Mr. Jash Piyush Shah – Management Learning’s From Dabbawala
Name: Jash Piyush Shah
Educational qualification:
2024 – 2026 N.L Dalmia Institute of management Studies and research – Mumbai, Maharashtra – Post Graduate Diploma In Management (PGDM).
2021 – 2024 H.R COLLEGE OF COMMERCE & ECONOMICS – Mumbai, Maharashtra – Bachelors of Management Studies (BMS Finance).
2020 – 2021 K.C COLLEGE OF COMMERCE & ECONOMICS – Mumbai, Maharashtra – Higher Secondary Certificate.
2018 – 2019 KENIA & ANCHOR ENGLISH SCHOOL –
Mumbai, Maharashtra – Secondary School Certificate.
Undertaking
I declare that this essay is the work of my own creation as part of essays competition organized by Dabbawala Enterprises Pvt. Ltd. I transfer the ownership, title and rights of this essay to Dabbawala Enterprises Pvt. Ltd. Dabbawala Enterprises Pvt. Ltd. may use this essay content in any way it deems suitable.
Name: Jash Piyush Shah
Date: 12th August, 2024.
Management Learning’s from Dabbawala
In this busy and hustling city of Mumbai where every individual is striving is hard to achieve their goals to earn Money and live a better livelihood, Management of Time plays an important role. Often, we see people skipping their Lunch during work time due to lots of workload or inconvenience to prepare to food at home due to shortage of time. To overcome this problem comes the Century Old player in the Market, “The Dabbawalas”. Dabbawalas are serving our nation right since British People ruled our country. “Making the Right Tiffin reach at Right Time to the Right Client” is what Dabbawalas are specialised for, is what Dabbawalas are known for. How do they Make this possible? And even that serving the nation for over 100+ Years what is so special in them, What kind of Branding always helps them to stay ahead of their competitors? That is the strong network, strong team of 5000+ Dabbawalas because of which our city of Mumbai never stays hungry. This strong team of Dabbawalas ensures that they make the Right tiffin, Reach the Right Client at the Right time. Dabbawalas is not just a team that Delivers Tiffin, Dabbawalas deliver Emotions, Dabbawalas help deliver love of mother carefully packed in the form of food to a Child, Dabbawals help Deliver happiness. Since inception Dabbawalas are using traditional form of coding method which has a very Minimal error rate of 1 in a 16 million, which helps them deliver tiffin with precision.
However, the world spins faster now. Food delivery apps like Swiggy, Zomato and instant same day delivery service offering platform, “WeFast”, with their lightning-quick deliveries and algorithmic precision, threaten to drown out the gentle clinking of the Dabbawalas’ steel tiffin carriers. The question arises – can tradition compete with technology? The answer lies not in a binary choice, but in a masterful fusion.
The Secret Ingredient: The Human Touch
The Dabbawalas’ strength lies not in algorithms or servers, but in the trust and camaraderie forged over generations. They are a community, bound by a shared purpose and a deep understanding of Mumbai’s labyrinthine lanes. This human touch is an intangible asset in a world increasingly dominated by faceless convenience.
Embracing the Digital Symphony
Technology, however, can be a powerful conductor in this human orchestra. A Well-Crafted Mobile and Desktop responsive app can be the first note, allowing customers to order, track their tiffin, and provide feedback. Imagine a young professional, fond for the taste of home, placing an order for their mother’s signature “Home Made Dal” through a user-friendly app. This seamless integration of tradition and technology creates a win-win situation for both the Dabbawalas and their customers. By creating and offering Application for ordering for tiffins, will help Dabbawalas to tap the untouched customer base which were earlier not ordering foods through Dabbawalas, and offering app is a best option and majority of population today spends their maximum time on Mobile Phones. There may be a challenge about how all the Dabbawalas may accept orders and deliver it. Here, we can take instance of Uber and Ola, which are Cab Ride booking platforms. Just like Uber and Ola offer two applications one for consumer like us and one for the Drivers who wish to Join Ola & Uber Fleet to Drive Cabs, Dabbawalas can take the initiative and work for Developing similar 2 apps, one which the consumer like us will use and one which the Dabbawalas who deliver tiffin will be using. There are 2 ways of operations which Dabbawalas can aim at performing to deliver tiffin under new initiative:
- They can continue first meeting at a spot bringing together all tiffins and then delivering them as per orders received on Mobile Application Platform.
- Assume anyone in Chembur books the order for delivering Tiffin through Dabbawala App, so Any Dabbawala nearby has to accept request collect Tiffin and deliver the Tiffin to Destination.
Revenue and Pricing Aspects
So according to the data available across web sources the current yearly turnover of Dabbawalas accounts to ₹90 crores. So considering there are 5000 Dabbawalas delivering tiffin so following is the calculation of per month income of Dabbawala:
90,00,00,000/12/5000 = ₹15,000 per month.
So as per this each Dabbawala is currently earning income of ₹15,000 per month.
Also, as per the information available on website, around 2,00,000 Mumbaikars have used Dabbawala service to deliver tiffins, so in order to identify approximate consumer spending for using Dabbawala service per month, calculation is as follows:
90,00,00,000/12/2,00,000 = ₹375 per month.
So according to above calculation each Dabbawala earns ₹375 per month from each consumer availing Dabbawala service for delivering tiffins.
Making a breakthrough, penetration in market:
India’s food delivery market is substantial and rapidly growing. Mumbai is one of the largest and most affluent cities in India, with a high density of population and a thriving food culture. It’s safe to assume that it contributes significantly to the overall market.
- Zomato
- Swiggy
- Chowman
- UberEats
- Food Panda
- Domino’s
- HungryJi
- La Pino’z Pizza
- Dunzo
- Eat Fit
Above mentioned companies may be said to be competitors to Dabbawalas as they offer food delivering services to customers. Non Availablity of Home cooked food and desire to try out new food, attracts consumers to order food from these platforms. But consumers ordering food from these platforms might not order food regularly considering health concerns, on the other hand home cooked food is such that it can be consumed everyday. So lets assume that each weekend days these platforms gets a chance to deliver food to consumers, or few days from a week to deliver food to office working employees as customers. But just imagine the home cooked food which Dabbawalas deliver from client’s own home to them, the food which can be consumed everyday and does not affect the health of consumers as it is being affected by food delivered from restaurants by above platforms, just imagine how big upper hand Dabbawalas can get by delivering food everyday a week as compared to only weekend or specific days a week.
Speaking about Zomato, their per year revenue stands at ₹86.9 billions which is equal to ₹8690 crores the annual number of active Zomato users in 2023 was ₹58 million which is equal to ₹5.8 crores Therefore, consumer spending for using Zomato service per month, calculation is as follows:
86,90,00,00,000/ 5,80,00,000/ 12 = ₹125 per month.
So according to above calculation each Zomato order earns ₹125 per month from each consumer availing Zomato service for delivering food.
As per data of 2020, Zomato across India has total number of 2,85,000 employees which is approximate 57 times of total number of Dabbawala team, as Scalability increases cost decreases. Team Dabbawalas can focus on making their team more big which will help them earn more. Increasing their price from ₹375 to near ₹500 per consumer spending on order per month might help to earn ₹125 more per month per consumer which aggregates to ₹30,00,00,000 (30 crores) additional profit (125 hiked price per month per customer * 12 no of months * 2,00,000 existing no of customers). This additional profit over existing 90,00,00,000 (90 crores) revenue can help develop Service of Dabbawalas to a greater extent.
How effectively Dabbawalas can use this amount:
- Buying electric cycles for Dabbawala Delivery men:
Buying electric cycle can help take a better initiative towards sustainable environment and better, efficient, faster deliveries. The average price of an electric cycle in Mumbai typically ranges from ₹25,000 to ₹50,000.
So considering the highest of Average which is ₹50,000. Dabbawalas can every year add 1000 Electric Cycles which will cost around 5,00,00,000 (5 crores). And still they will be left with 25,00,00,000 (25 crores every year).
- Buying Electric Bikes for Dabbawala Delivery men:
Buying electric cycle can also help take a better initiative towards sustainable environment and comparitively better, efficient, faster deliveries.
The average price of an electric delivery bike in Mumbai can range from ₹70,000 to ₹1,20,000.
So considering the highest of Average which is ₹1,20,000. Dabbawalas can every year add 500 Electric Cycles which will cost around 6,00,00,000 (6 crores). And still they will be left with 24,00,00,000 (24 crores every year).
- Advertising and Branding using Celebrities:
A-list Bollywood celebrities: Costs can range from crores to tens of crores per year for exclusive endorsements and multiple campaigns.
B-list celebrities and regional stars: Costs can range from a few crores to several crores per year, depending on their popularity and the campaign scope.
Influencers and digital celebrities: Costs can vary widely based on their follower count, engagement rate, and niche. Typically, it’s a fraction of what traditional celebrities command.
- Smartphones for Delivery Purpose:
Budget-Friendly Options (₹10,000 – ₹15,000) Approximate costing for 5000 Dabbawalas – ( 5000 * 15000 = ₹7,50,00,000)
- Offer basic functionalities and decent performance for daily tasks.
- Limited camera capabilities and battery life.
- Examples: Realme, Redmi, Poco
Mid-Range Options (₹15,000 – ₹30,000) ( 5000 * 30000 = ₹15,00,00,000)
- Better performance, cameras, and battery life.
- Suitable for most users.
- Examples: Samsung, OnePlus, Vivo, Oppo
So by focussing on Branding, by building a brand of Dabbawalas, event the Working kids of Dabbawalas will be motivated to Join the Dabbawala team and all this will greatly help improve the livelihood of Dabbawalas.
Beyond the Meal: A Symphony of Flavors
The Dabbawalas can also explore partnerships with local restaurants and caterers, creating a symphony of flavors that caters to evolving tastes. This allows them to broaden their customer base without sacrificing their core offering – the home-cooked meal, a connection to one’s roots delivered on a daily basis. They can position themselves as curators of authentic, local flavors, a stark contrast to the standardized menus of their competitors.
Catering to the Corporate Concerto
Another melody to consider is Corporate Catering. Offices are increasingly seeking healthy and affordable meal solutions. Haldiram being the existing major player in this market, The Dabbawalas, with their focus on fresh food and reliable delivery, can tap into this growing market. Offering customized meal plans and bulk orders, they can carve out a secure niche, not only expanding their reach but also guaranteeing a stable customer base. Also Dabbawalas can focus on Offering Tiffin services to Outstation students seeking for food studying in college.
Speed: A Delicate Note
Undoubtedly, speed remains the biggest challenge. While the Dabbawalas might face the challenge competing with the breakneck pace of quick-commerce platforms, they can excel in offering a predictable and reliable service. Optimizing delivery routes and leveraging technology can help minimize delivery times. Additionally, exploring pre-cooked meal options that can be quickly reheated without compromising taste might be the key to striking a harmonious balance.
The Future Symphony: A Fusion of Tradition and Technology
The Dabbawalas stand at a crossroads, with an opportunity to write a new chapter in their storied legacy. By embracing digital tools, expanding their offerings, and staying true to their core strengths, they can create a sustainable and profitable business model. Imagine a world where the efficiency of technology seamlessly complements the human touch of the Dabbawalas, creating a truly unique and customer-centric service. Theirs can be a story of not just survival, but of thriving, becoming pioneers in a new era of food delivery where technology and human connection create a symphony for the senses.
So by focussing on Branding, by building a brand of Dabbawalas, event the Working kids of Dabbawalas will be motivated to Join the Dabbawala team and all this will greatly help improve the livelihood of Dabbawalas.
