--- title: "Milk Delivery startups struggling to grow?" id: "8935" type: "post" slug: "milk-delivery-startups-struggle-to-grow" published_at: "2019-11-29T04:24:00+00:00" modified_at: "2025-08-31T11:47:11+00:00" url: "https://locus.sh/blogs/milk-delivery-startups-struggle-to-grow/" markdown_url: "https://locus.sh/blogs/milk-delivery-startups-struggle-to-grow.md" excerpt: "Hyperlocal delivery is a rising trend in Indian e-Commerce and on-demand home delivery services. Can technology save hyperlocal milk delivery companies?" taxonomy_category: - "News" taxonomy_post_tag: - "Ecommerce" - "Hyperlocal Delivery" - "Same Day Delivery" --- #### [News](https://locus.sh/blogs/category/news-en/) # Milk Delivery startups struggling to grow? [Team Locus](/author/team-locus/) Nov 29, 2019 3 mins read ## Key Takeaways - The Indian hyperlocal delivery market is experiencing rapid growth, projected to exceed INR 2,306 crore by 2020, driven by increasing demand for doorstep delivery services. - Milk delivery startups face significant challenges scaling operations due to funding constraints, complex supply chains, and profitability issues, despite handling 80,000-90,000 daily orders. - Several major players like Doodhwala and Milkbasket are scaling down operations or seeking mergers with larger companies to improve supply chain efficiency and reduce operating costs. - Locus’s AI-powered route optimization solutions help hyperlocal delivery companies overcome logistics challenges, enabling improved delivery efficiency and reduced operational costs. *Hyperlocal milk delivery companies are facing a funding crunch. Can technology save the day?* Hyperlocal delivery is a rising trend in Indian e-Commerce and the demand for on-demand delivery/at-home services is constantly increasing. From ordering food and groceries to fresh meat and vegetables and getting beauty services at home, the hyperlocal market is on the boom. According to Ken Research, the Indian Hyperlocal market is expected to grow at a considerable pace, exceeding INR 2,306 crore by 2020. The [hyperlocal delivery](https://locus.sh/blogs/hyperlocal-delivery-then-and-now/) system caters to a limited geographical area with quick delivery of goods as per customer requirements within a short duration of time. Several start-ups have sprung up to meet the [dynamic daily demands of the consumer](https://locus.sh/blogs/last-mile-strategies-meet-customer-expectations/) , promising express delivery of orders and quick services at the doorstep. India is a country that runs on tea and coffee, and hence milk has become one of the most essential everyday items for almost every Indian household. A number of milk delivery start-ups have also come up in the urban sectors, delivering milk, bread, eggs, and other daily consumables in the busy morning hours. However, these milk delivery start-ups seem to be struggling to scale up and expand operations due to limited funding. The market is expected to undergo some consolidation in the coming months, owing to poor economics, complex supply chain, and profitability issues, reports ET. External funding is a major challenge. These start-ups are looking for merger opportunities with bigger players or limiting their operations to bring efficiency to the supply chain. Bengaluru-based milktech startup Doodhwala recently discontinued its operations, selling its business to FreshToHome. Another start-up, Milkbasket is expected to scale down operations and limit its products to bring down operating costs and improve efficiency in the supply chain. Milkbasket currently delivers milk, bread, eggs, butter, juices, and other daily needs. DailyNinja, another early morning milk delivery service, is looking for a merger with BigBasket. Startups in the milk delivery business execute as many as 80,000-90,000 orders daily, signifying their need and popularity. However, these companies need a solid strategy for survival and growth. Partnering with tech innovators to bring efficiency to logistics and supply chain operations can help reduce costs and improve performance dramatically. Locus helps businesses in [e-Commerce](https://locus.sh/ecommerce-logistics/) and hyperlocal delivery optimize logistics with AI-driven solutions, bringing efficiency, transparency, and consistency to the supply chain. Check out how we helped [BigBasket optimize route planning](https://locus.sh/blogs/expanding-with-accountability-the-supply-chain-story-of-bigbasket/) and achieve 99.5% on-time delivery. MEET THE AUTHOR Team Locus Written by the Locus Solutions Team—logistics technology experts helping enterprise fleets scale with confidence and precision. ### Related Tags: [Ecommerce](https://locus.sh/blogs/tagged/ecommerce/) [Hyperlocal Delivery](https://locus.sh/blogs/tagged/hyperlocal/) [Same Day Delivery](https://locus.sh/blogs/tagged/same-day-delivery/) [https://locus.sh/blogs/will-e-commerce-team-up-with-retailers/](https://locus.sh/blogs/will-e-commerce-team-up-with-retailers/) #### [E-Commerce](https://locus.sh/blogs/category/ecommerce-fulfillment/) ## [Will E-commerce Shake Hands With Small Retailers and Kirana Stores?](https://locus.sh/blogs/will-e-commerce-team-up-with-retailers/) [Team Locus](https://locus.sh/blogs/author/team-locus/) Nov 13, 2019 The Indian government has approached e-commerce companies to send plans to work with small retailers and Kirana stores to make room for mutual growth. 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