Mumbai's Dabbawalas - An Entrepreneurial Success Story

Background Note The origin of the Dabbawalas' lunch delivery service dates back to the 1890s during the British raj.9 At that time, people from various communities migrated to Mumbai for work. As there were no canteens or fast food centers then, if working people did not bring their lunch from home, they had to go hungry and invariably, lunch would not be ready when they left home for work. Besides, different communities had different tastes and preferences which could only be satisfied by a home-cooked meal. Recognizing the need, Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra,10 started the lunch delivery service. For his enterprise, Mahadeo recruited youth from the villages neighboring Mumbai, who were involved in agricultural work. They were willing to come as the income they got from agriculture was not enough to support their large families, and they had no education or skills to get work in the city. The service started with about 100 Dabbawalas and cost the client Rs.2 a month. Gradually, the number of Dabbawalas increased and the service continued even though the founder was no more...

Organizational Structure and Working Style The Nutan Mumbai Tiffin Box Suppliers' Charity Trust had a very flat structure with only three levels, the Governing Council, the Mukadams11 and the Dabbawalas (Refer Exhibit I). From the Governing Council, a President and a Secretary were elected. The Governing Council held meetings once a month which were attended by the Mukadams and Dabbawalas. At these meetings, the Dabbawalas discussed their problems and explored possible solutions. The problems could be with the police, municipal corporation, customers, etc. They also adjudicated disputes among Dabbawalas using their own system. The Trust collected Rs.15 from each Dabbawala every month to maintain a welfare fund...

Delivery System The Dabbawala service was available wherever the local trains ran in Mumbai as it was their primary mode of transportation. During the delivery process, the dabbas changed hands at least four times before they reached their destination...

Will the Dabbawalas continue to feed the Hungry? The Dabbawalas have been in service for more than a hundred years, surviving the many changes in the city of Mumbai. However, the changing environment was threatening the survival of the Dabbawalas. "The second generation does not want to get into this business as the returns are not much," said one Dabbawala.22 Some Dabbawalas felt that there was danger of the business eventually dying out as they are unable to attract new recruits from within their families and relatives who had traditionally been their main source of recruitment...

Study Questions 1. Explain customer decision making about Dabbawalas. 2. How technology can help in making easy delivery system?