Tech, ExplainedE-commerce, travel and logistics
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Milk and grocery subscription

Milk at the door before dawn.

INSIDE: DIRECT-TO-CONSUMER (D2C) BRANDHOW IT WORKS · ONE LITRE OF MILK A DAY FOR A FAMILY IN GURUGRAMThe familysubscribes to1 litre a dayat ₹70, andtops up ₹2,100At 10 pm, theyadd a ₹45 loafof bread forthe morningAt 11 pm, theapp closesorders andadds up thecity's litresOvernight, themilk is chilledto about 4°Cand packedA rider followsa planned routeand deliversbefore 7 am₹115 is debited;the walletshows ₹1,985ALSO TALKS TOSubscription commerce↗ D2C E-COMMERCERoute optimisation software↗ LOGISTICS AND SUPPLY CHAININSIDE: DIRECT-TO-CONSUMER (D2C) BRANDHOW IT WORKS · ONE LITRE OF MILK A DAY FOR AFAMILY IN GURUGRAMThe family subscribes to1 litre a day at ₹70, andtops up ₹2,100At 10 pm, they adda ₹45 loaf of breadfor the morningAt 11 pm, the app closesorders and adds up thecity's litresOvernight, the milkis chilled to about4°C and packedA rider follows a plannedroute and delivers before7 am₹115 is debited; thewallet shows ₹1,985ALSO TALKS TOSubscription commerce↗ D2C E-COMMERCERoute optimisation software↗ LOGISTICS AND SUPPLY CHAININSIDE: DIRECT-TO-CONSUMER (D2C) BRAND · ONELITRE OF MILK A DAY FOR A FAMILY IN GURUGRAMThe family subscribes to 1 litre a day at₹70, and tops up ₹2,100↓At 10 pm, they add a ₹45 loaf of breadfor the morning↓At 11 pm, the app closes orders and addsup the city's litres↓Overnight, the milk is chilled to about4°C and packed↓A rider follows a planned route anddelivers before 7 am↓₹115 is debited; the wallet shows ₹1,985ALSO TALKS TOSubscription commerce↗ D2C E-COMMERCERoute optimisation software↗ LOGISTICS AND SUPPLY CHAIN
A Gurugram family's one-litre daily milk order and a loaf of bread are counted at the 11 pm cut-off, chilled and packed overnight, routed to a rider and delivered before 7 am, with ₹115 debited from the wallet.
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A milk and grocery subscription is a service that delivers milk, bread, eggs or fresh meat to your door on a fixed schedule, usually before dawn, after you order once. You set up the subscription in the brand's app, and the brand's own software runs the stock, the delivery route and the cold chain. It is one way in which a direct-to-consumer (D2C) brand sells fresh food.

Why sell fresh food by subscription? Milk spoils within a day or two. If a brand buys too much milk from farms, it throws the rest away. If it buys too little, customers go without. A subscription tells the brand, the evening before, almost exactly how many litres to collect for each neighbourhood. So very little is wasted.

Consider a family in Gurugram who subscribe to one litre of milk every morning, at ₹70 a litre. They also top up the app's wallet with ₹2,100, enough for 30 days. Paying from a wallet avoids a separate online payment for every small daily amount. At 10 pm, they add a ₹45 loaf of bread for the next morning. At 11 pm, the app closes the next day's orders. Its system adds up the litres and loaves for every customer in the city.

During the night, the milk is collected from farms and dairy centres, chilled to about 4°C and packed. Keeping food within a set temperature range all the way from the source to the door is called the cold chain. Sensors record the temperature at each stage. In the early hours, the packs are sent to small local hubs. Route optimisation software gives each delivery rider an ordered list of doors. A rider can deliver to many homes in one building, so the route is short. The family's milk and bread are at their door before 7 am. The app debits ₹115 from the wallet, which now shows ₹1,985.

The app also handles the small changes. A family can pause deliveries while it travels, change the quantity or report a missed delivery. Subscriptions for goods that do not spoil, such as coffee or pet food, use a general subscription commerce tool instead.

How is this different from quick commerce? Quick commerce delivers an order within minutes of your tapping "buy", from a dark store, a small warehouse near you. A milk subscription delivers on a schedule that you set once. So the brand can plan the whole night's work in advance.

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