CQ:

1. Consider only grocery

2. Where are the dispatch locations are situated -> assume only Delhi

3. Destination is PAN India – Yes

4. Stock availability – 100%

5. Fill rate – 100%

Approach:

1. Population -> 1400Mn

2. 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

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