Mumbai’s ‘Dabbawalas’ – An Entrepreneurial Success Story

Submitted By:

Divya AroraHarkunwar Singh BhatiaJyotsnaa AhujaPrabin DaimarySudhanshu RoySunita Ahuja

Submitted To:

Prof. Hitesh Manocha

History of Dabbawalas

• Started in 1890 by Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra.

• Mahadeo recruited youth from the villages neighboring Mumbai, who were involved in agricultural work.

• Service started with about 100 Dabbawalas.• Three tier structure:

– Executive committee – Mukadams – Dabbawalas

Some Facts

• No use of computer technology• Total Area Coverage: 60-70 Km.• Incentive system with “equal pay for all”• Easy coding scheme as the level of literacy is

not very high• Not even a single strike in over 100 years.• World record in best time management.• Name in “GUINESS BOOK of World Records”.

Dabbawala’s Organizational Structure

Governing Council

Mukadams

Dabbawalas

President Secretary

Service Marketing Dabbawalas’ Concepts Performance

• Simultaneous production and consumption - Mistakes by employees visible.

• GAPS Model

• Delivering a Six Sigma performance (99.99%) = 1 error in 16 million

• Expected Service• Perceived Service

Almost no gap

Demand Management Constraints in Dabbawalas’ Services

• Time Constraint

• Equipment Constraint

• 3 hour cycle each day.

• Travel during peak hours.

• Local trains are the lifeline.

• Cannot expand to other cities.

Services Marketing Mix

• PRODUCT– Delivery of dabbas from home to schools/offices.– Meals can also be prepared as per customer’s

preferences if required.

• PRICE– From June 1, 2012 Standard price between Rs.500 –

Rs750 per month is followed by dabbawalas throughout Mumbai.

Services Marketing Mix

• PLACE– Decentralized operations– Various centers in different parts of Mumbai

• PEOPLE– No. of employees:5000– Cultural similarity – all dabbawalas belong to the

same community.– No Alcohol Drinking during business hours– Wearing White Cap during business hours

Services Marketing Mix

• PROMOTION– Referrals from friends and relatives– Word-of-Mouth.

• PHYSICAL EVIDENCE– Carrying Identity Cards– Various centres– Dabbawalas wear Gandhi caps which makes them

easily identifiable.

Unique Coding System

BO

P 10

15/A/11

P: Code for Dabbawala at residential station

BO: Borilvili

10: Nariman Point- destination station

15/A/11: 15th building and 11th floor

Services Marketing Mix

• PROCESSStage I Stage II Stage III Stage IV

The dabbawalas collect the

dabbas from the clients and take them to the nearest

railway station.

At the station, a Mukadam

sorts the dabbas

according to their

destination and arranges them in tray/crates.

The Dabbawalas

take their consignments and get on the

train.

The dabbawalas get off their respective

stations where a Mukadam re-

sorts all the dabbas and the dabbas are grouped according to the area of delivery.

The dabbawalas

take their consignments

and deliver the dabbas to each client’s

office or school.

Deliveries are made either by walking, using a tray,

or on a bicycle.

Strategies adopted for sustenance

• Monthly meeting with the governing council to discuss various problems.

• Established a welfare fund to give loans, help them in medical emergencies, for educational costs, run pilgrim rest houses, subsidize religious pilgrimages and provide facilities for important occasion like weddings etc.

• Provision of charitable fund.

• Income was divided equally among all members after paying for expenses like railway passes, cycles and crates.

• No age bar for working as a dabbawala.

Challenges

• Increasing no. of fast food joints which provide delivery facility.

• Organisations give food coupons to employees.• High dependency on local trains• Next generations are not interested as rewards

are low.• Low Literacy in dabbawalas.• Adverse weather conditions.

Suggestions

• Use technologies like SMS for bookings.

• Extensive use of website for online bookings: www.dabbawala.in

• Promotion of home cooked meals and its benefits.

• Promote themselves as brand.

• Dabbawala merchandise.

Thank You