Rino CEO Trung Thanh Nguyen says food delivery in Vietnamese cities often arrive within 30 minutes, while grocery deliveries can take up to three hours. Nguyen claims that by establishing a vertically integrated logistics infrastructure-focused around “dark stores,” which are establishments that are exclusively used for order fulfilment, the Rino Business Model would be able to reduce grocery delivery times to as little as 10 minutes.
Funding rounds of Rino
Superfast hyperlocal grocery delivery service Rino raised $3 million in a round of funding.
A $3 million pre-seed round has been raised by the business, which plans to debut in Ho Chi Minh City later this month. The investment was led by Global Founders Capital (GFC), and includes Sequoia Capital India, Venturra Discovery, and Saison Capital as well.
Rino (which stands for “right now”) intends to rapidly grow, initially in the most densely inhabited regions of Ho Chi Minh City and then in Hanoi, with a larger public debut in March 2022.
Why Rino Business Model becomes a solution for food delivery issues
Nguyen worked as a member of the founding team and chief operating officer of Baemin Vietnam, one of the country’s leading meal delivery apps, prior to launching Rino. Before that, he was the head of Grab Vietnam’s GrabBike and GrabExpress divisions.
Nguyen told TechCrunch that the quick acceptance of food delivery in Vietnam “created a clear roadmap for the groceries segment” when asked why he intended to concentrate on grocery deliveries following Baemin.
“Four years ago, food delivery in Vietnam was slow. Meals took up to an hour to reach customers, which meant that individuals had to get used to planning meals in advance,” he said. Consumers’ behaviour changed swiftly and the industry as a whole had a potential to grow more than 10-fold in a very short period of time after the platforms lowered it to under 30 minutes.”
According to Nguyen, the rate of grocery deliveries would remain the same. Grocery delivery surged in popularity in Vietnam last year, and the practice has now become a regular part of the country’s consumer shopping habits, according to him. The problem is that traditional delivery solutions such as retail chains or third-party companies that deliver on behalf of merchants are either extremely slow or unreliable for customers.
Rino Business Model Explained
Through the use of its own dark shops and direct purchases from suppliers, Rino intends to reduce the amount of time needed to complete a shipment. Nguyen stated that Rino plans to split its cities into service zones with a radius of one to three kilometres in order to make deliveries in such a small amount of time.
This is accomplished by the Rino business model by “not only holding inventory and sourcing directly from suppliers but also integrating its own dark shops into the logistics process,” as described in an update.
Dark shops are order fulfilment facilities that “act as a logistical base and are not meant to be immediately customer-facing,” according to the company’s website. ” Delivery employees can pick up items quickly after they are purchased and deliver them to a number of houses in a single trip if the locations are “placed in highly populated residential areas.”
Last-mile deliveries will be made in batches by Rino’s own fleet of riders in each zone, which will have a dedicated dark shop maintained by Rino.
In a statement about the investment round, Saison Capital partner Chris Sirise said, “The quick commerce landscape has benefitted from permanent gains as consumers of all demographics continue to rely on e-commerce options even after COVID-19 lockdowns taper off.
It confirms what we’ve seen from Trung in his expertise guiding development at Baemin Vietnam and Grab — high-grade industry leaders who not only have the insights required to dominate the market but also the local know-how needed to genuinely deal with the specific requirements.”
Trung Thanh Nguyen, the former COO of Baemin Vietnam and the previous Head of Grab Vietnam’s Two-Wheel Division (GrabBike and GrabExpress), started the company in December 2021.