You have a grocery delivery service (similar to Blinkit or Instamart) that ships pan India within 24 hours. Without searching online for specific details, estimate how many 1-ton trucks you need to operate this service using the power of logic based on assumptions (e.g., assuming that India has 1.4 billion people of which you have a 25% market share).

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You have a grocery delivery service (similar to Blinkit or Instamart) that ships pan India within 24 hours. Without searching online for specific details, estimate how many 1-ton trucks you need to operate this service using the power of logic based on assumptions (e.g., assuming that India has 1.4 billion people of which you have a 25% market share).

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Yajur Bawa · Answer 1 · 2024-01-03T16:21:10+0000

Population of India- 1.4 billion

Market Share- 25% / 350 million

Let us assume that an average family size in India is 4

No. of Families- 350/4 = 87.5 million

Since we are in the business of Grocery Delivery Service, we can assume that a household (family) would place an order once in 2-3 days (barring the need for milk everyday). Hence assuming 2.5 days here

Number of orders everyday- 87.5/2.5= 35 million

Average Weight of an order- 3kg

Weight being transported across India everyday- 35 million * 3= 105 million kg / 105,000 tons

Since Trucks are used only for Mid Mile deliveries in the business that we are in, let us assume that a Truck takes 3 hours to make a delivery from the warehouse to a dark store and back. The truck is operational for 9 hours a day that gives it 3 round trips.

Weight capacity of a truck (assuming 100% truck utilization)- 1 ton

Hence, we can estimate the number of trucks required by simply dividing the weight being moved across the country and number of trips being made by the trucks- 105,000/3 = 35,000 trucks

Nishant Kumar · Answer 2 · 2024-01-28T16:54:14+0000

CQ:

Consider only grocery
Where are the dispatch locations are situated -> assume only Delhi
Destination is PAN India - Yes
Stock availability - 100%
Fill rate - 100%

Approach:

Population -> 1400Mn
No of families
1. Urban -> 560Mn
  1. No of orders made per family/week -> 2
  2. No of total orders -> 1120 Mn/week
  3. Blinkit estimate -> 280 Mn/week
  4. Avg order weight -> 200gm
  5. Total order weights for Blinkit -> 140 Mn kg/week
  6. No of trucks required per day -> (140 *10^6)/(10^3 * 7) = 20 * 10^3 = 20,000
2. Rural -> 840Mn
  1. No of orders made per family/week -> 1
  2. No of total orders -> 840 Mn/week
  3. Blinkit estimate -> 210 Mn/week
  4. Avg order weight -> 100gm
  5. No of trucks required per day -> (210 *10^6 *0.1)/(10^3 * 7) = 30,000

Total no of trucks reqd to operate each day then is 40,000