Jugnoo the Chandigarh-based on-demand auto-rickshaw aggregator has said to resume its hyper local delivery by launching the ‘Fatafat’ service. Learning from the failures of hyper local delivery model of other brands, the company has decided to restrict to deliver only fruits and vegetables to its customers with its network of auto-rickshaws.

The Fatafat service has started in Chandigarh and it will soon be covering other cities, starting from Gurgaon in the next month. The entire idea behind Fatafat service is to have a complete end-to-end integration, where they will buy from the mandis in the morning and store in their warehouses. The products will then be delivered by auto-rickshaw drivers who are not taking a ride or are sitting idle.

Revolving around a huge market for fresh fruits and vegetables and the decent margin on them, Fatafat is already clocking 100 deliveries a day.

The Paytm-backed firm initially brought this Fatafat service last year in March which was continued for eight months only. Earlier it was used to deliver product orders such as grocery to buyers at their homes from stores within the city. Altogether, about 2 lakh users were registered with Fatafat at that time and the company was receiving more than 1,000 orders a day across four cities. But the service was withdrawn for multiple reasons.

According to Jugnoo, which started operations in 2014, its autorickshaw aggregation business has expanded to 10,000 autorickshaws registered on its network in over 20 cities.

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