Fresh groceries delivery startup Dailuobo has secured an RMB 634 million Series A financing round led by Goachun Capital and Morningside Capital, according to Innovative Retail Club.
Founded in 2016, Dailuobo specializes in next-day grocery delivery and pick-up, with its own warehousing and logistics network—itself worth an estimated RMB 100 million (USD 14.55 million)—to support the operation.
Dailuobo is estimated to have opened nearly 1,000 stores since launching. These stores are located around densely-populated areas and customers go to pick up their orders instead of having it delivered to their homes. Though the company has largely focused on top-tier cities until now, it is planning to expand to third-tier cities and below in the feature.
Three features set Dailuobo apart from other grocery delivery players in China. First is the platform’s pricing model, which offers quantity-based discounts for larger orders, encouraging different users to group their orders together. Second is the company’s delivery schedules, wherein orders are delivered in batches to the stores at different set times throughout the day, with the final pick-up being done by the customers themselves.
The third feature is a members pricing system that imitates Costco. You pay a membership fee and get discounts on your purchases. On top of getting special pricing discounts, customers who sign up to become Dailuobo members are entitled to other perks, such as free holiday and birthday gifts, and one-on-one customer service.
