Nikhil Kamath shared his thoughts on the growing focus on delivery speed and sustainability as India's GDP per capita and wages increase. He questioned whether delivery wages would remain viable if GDP per capita reached $5,000. Reflecting on consumer behavior, he recounted buying a pair of expensive shoes via quick commerce while traveling. The shoes didn’t fit well, making him regret the purchase. He wondered if there was a limit to average order value and how many consumers in India would forgo in-store experiences for high-value goods. He believes, “Commodity is different from brand.”
He used the dabbawalas as an example of an efficient, low-cost delivery system and wondered if modern quick-commerce companies (like those delivering groceries or shoes in 10 minutes) can learn from them as India grows richer and delivery costs rise.
What did he observe about Mumbai Dabbawalas?
He pointed out that Mumbai’s dabbawalas are renowned for their logistical excellence, delivering around 200,000 tiffins daily with an error rate of just one in 16 million deliveries. Their system, which has been studied by Harvard and admired by global leaders, is built on simplicity, teamwork, and precision. They rely on a manual coding system using colors, numbers, and letters to ensure accurate deliveries. Despite most workers having little formal education, their efficiency rivals some of the world's best supply chains.
Zerodha’s Nikhil Kamath added that every day, dabbawalas pick up tiffins from homes by 8:30 AM and transport them via Mumbai’s local trains. At major stations, they have only seconds to sort and load tiffins onto the correct trains before they reach their final destinations. The process is reversed in the afternoon to return empty boxes home. This highly organized workflow ensures timely delivery while keeping costs as low as ₹400–₹500 per month, making their service affordable and reliable.
Over the decades, dabbawalas have maintained an impeccable reputation, driven by their philosophy of work as worship. Their service has remained largely unchanged, operating without digital technology, motorized vehicles, or corporate backing. However, the COVID-19 pandemic severely disrupted their operations, with remote work and rail restrictions reducing their deliveries and earnings significantly. Many workers were forced to return home, while others tried alternative delivery services, though these could not match their traditional scale.
To adapt, dabbawalas have expanded beyond tiffin deliveries. They launched DigitalDabbawala, offering last-mile delivery for documents and laundry. They also introduced Dabbawala’s Kitchen, providing fresh, home-cooked meals through multiple cloud kitchens and an app. This evolution reflects their resilience, helping them stay relevant in a changing world while preserving their legacy.
The dabbawalas' success highlights how a well-structured system can deliver exceptional service at minimal cost. Their model raises an important question: What other businesses can achieve high efficiency while keeping costs low? According to Nikhil Kamath, companies like Southwest Airlines, DMart, and Zomato Hyperpure already follow similar principles of operational excellence.
Internet reacts
A user wrote, "For commodity, it’s about speed and price. For brand, it’s often story, experience, and assurance which is much harder to compress into a 10-minute delivery. And long-term survival of Q-commerce is dependent on automation (drones, bots) once human delivery becomes too costly." Another wrote, "Great points! As wages rise, quick-commerce will need to automate more to stay viable. High-value items like shoes still need the 'human touch' of stores. Maybe the future is a hybrid model: speed for essentials, experience for premium buys!"
( Originally published on Apr 04, 2025 )
He used the dabbawalas as an example of an efficient, low-cost delivery system and wondered if modern quick-commerce companies (like those delivering groceries or shoes in 10 minutes) can learn from them as India grows richer and delivery costs rise.
This is quite interesting. Delivery and speed of delivery have become a subject of national interest of late- what's sustainable as GDP per capita grows and wages per hour increase?
— Nikhil Kamath (@nikhilkamathcio) April 4, 2025
If GDP per capita goes to 5k USD (god willing🤞), what will delivery wages have to rise to, and is… pic.twitter.com/IAipxrxwv4
What did he observe about Mumbai Dabbawalas?
He pointed out that Mumbai’s dabbawalas are renowned for their logistical excellence, delivering around 200,000 tiffins daily with an error rate of just one in 16 million deliveries. Their system, which has been studied by Harvard and admired by global leaders, is built on simplicity, teamwork, and precision. They rely on a manual coding system using colors, numbers, and letters to ensure accurate deliveries. Despite most workers having little formal education, their efficiency rivals some of the world's best supply chains.
Zerodha’s Nikhil Kamath added that every day, dabbawalas pick up tiffins from homes by 8:30 AM and transport them via Mumbai’s local trains. At major stations, they have only seconds to sort and load tiffins onto the correct trains before they reach their final destinations. The process is reversed in the afternoon to return empty boxes home. This highly organized workflow ensures timely delivery while keeping costs as low as ₹400–₹500 per month, making their service affordable and reliable.
Over the decades, dabbawalas have maintained an impeccable reputation, driven by their philosophy of work as worship. Their service has remained largely unchanged, operating without digital technology, motorized vehicles, or corporate backing. However, the COVID-19 pandemic severely disrupted their operations, with remote work and rail restrictions reducing their deliveries and earnings significantly. Many workers were forced to return home, while others tried alternative delivery services, though these could not match their traditional scale.
To adapt, dabbawalas have expanded beyond tiffin deliveries. They launched DigitalDabbawala, offering last-mile delivery for documents and laundry. They also introduced Dabbawala’s Kitchen, providing fresh, home-cooked meals through multiple cloud kitchens and an app. This evolution reflects their resilience, helping them stay relevant in a changing world while preserving their legacy.
The dabbawalas' success highlights how a well-structured system can deliver exceptional service at minimal cost. Their model raises an important question: What other businesses can achieve high efficiency while keeping costs low? According to Nikhil Kamath, companies like Southwest Airlines, DMart, and Zomato Hyperpure already follow similar principles of operational excellence.
Internet reacts
A user wrote, "For commodity, it’s about speed and price. For brand, it’s often story, experience, and assurance which is much harder to compress into a 10-minute delivery. And long-term survival of Q-commerce is dependent on automation (drones, bots) once human delivery becomes too costly." Another wrote, "Great points! As wages rise, quick-commerce will need to automate more to stay viable. High-value items like shoes still need the 'human touch' of stores. Maybe the future is a hybrid model: speed for essentials, experience for premium buys!"
( Originally published on Apr 04, 2025 )
You may also like
India and EU strengthen climate partnership with strategic meetings, climate envoys of four nations join in
Football match ends in chaos as fans invade pitch and parents 'cover children's eyes'
World Health Day 2025: India marks progress in maternal and child health with key initiatives
Stanley shooting: Man shot dead in 'shocking' attack as neighbours 'want to move out'
Telangana BJP MLA T Raja Singh holds Shobha Yatra in Hyderabad on Ram Navami
