Dabbawala - Economic Analysis

Economic Analysis

Each dabbawala, regardless of role, gets paid about two to four thousand rupees per month (around £25–50 or US$40–80).

In 2002, Forbes Magazine found its reliability to be that of a six sigma standard. More than 175,000 to 200,000 lunch boxes get moved every day by an estimated 4,500 to 5,000 dabbawalas, all with an extremely small nominal fee and with utmost punctuality. According to a recent survey, they make less than one mistake in every 6 million deliveries, despite most of the delivery staff being illiterate.

The BBC has produced a documentary on dabbawalas and Prince Charles, during his visit to India, visited them (he had to fit in with their schedule, since their timing was too precise to permit any flexibility). Prince Charles also invited them to his wedding with Camilla Parker Bowles in London on 9 April 2005. Owing to the tremendous publicity, some of the dabbawalas were invited to give guest lectures in some of the top business schools of India, which is very unusual. Most remarkably in the eyes of many Westerners, the success of the dabbawala trade has involved no advanced technology, except for trains (and as mentioned above, SMS services for booking).

The New York Times reported in 2007 that the 125-year-old dabbawala industry continues to grow at a rate of 5–10% per year.

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