What is Blinkit? Business Model, Revenue Streams and More
Local grocery stores were already beginning to identify the potential of grocery delivery applications before the sudden outbreak of the pandemic. After COVID, the trend of online grocery delivery apps for stores has boomed due to necessity, convenience and people’s inclination towards doorstep delivery.
Indeed, the
grocery delivery market is booming and if we talk about the Indian grocery
market, it was valued at $2.9 billion in 2020 and now is forecasted to expand
at a CAGR of 37.1% from 2021 to 2028. The online grocery delivery market has
gained immense traction over the past couple of months due to the changing
attitude of people, growing urbanization, and the tech-savvy generation who
wants instant gratification from everything.
There are
many grocery delivery apps in India but Blinkit has been making headlines since
its launch because it is the subsidiary company of popular food delivery app,
Zomato. Blinkit is an Indian online grocery delivery app that operates in
various Indian cities, allowing customers to order grocery products
online.
Today,
Blinkit has created hype across the Indian grocery delivery market but how does
it make money? What business model does it follow? You will get answers to all
these questions in this detailed blog. Keep reading.
What is Blinkit?
Blinkit is
an online grocery delivery company that allows customers to place online orders
for daily essentials and get them delivered to their doorsteps. From fruits to
chicken to snacks to vegetables to pulses and bakery products, get everything
in 10-25 minutes at your preferred location.
In short,
Blinkit is an eCommerce marketplace that makes grocery shopping extremely easy
and comfortable. It allows customers to shop at their favourite stores in their
nearby areas and receive quick delivery. People can buy fruits, vegetables,
flowers, meats and everything with just a few taps.
Blinkit is
India’s most used grocery delivery application and received more than $1
billion in funding from various investors. The company was founded in 2013 and
has become a unicorn company with a $1.01 billion
valuation.
Blinkit follows a marketplace model, it has no personal stores or warehouses
but the company ties up with local stores and delivery partners to fulfill
customers’ online orders.
Blinkit
accepts orders via its Android and iOS apps and its website which allows
grocery stores to update their menu and delivery providers to pick up the order
in no time.
Fun Facts About Blinkit
Brand Name |
Blinkit |
Founded in |
2013 |
Founders |
Albinder Dhindsa, Saurabh
Kumar |
Industry |
eCommerce, Online shopping |
Headquarters |
Gurgaon, India |
Area Served |
India |
Parent Organization |
Zomato |
Website |
|
Operates in |
28 cities of India |
Albinder
and Saurabh observed a large void in the delivery industry. At the time, a lot
of businesses were starting up, so they both recognized an opportunity. They
were driven to oversee the chaotic hyperlocal marketplace where companies and
consumers transacted.
They
started laying the foundation for their startup at that point. To serve as a
one-stop shop for customers' local delivery needs, they planned to offer
on-demand pickup and drop services. This was carried out to assist customers
with transportation from surrounding businesses, including restaurants,
pharmacies, and grocery stores. At first, they both allowed customers to have
groceries delivered from surrounding stores and supermarkets.
Blinkit is Acquired By Zomato
After
months of talks, discussions, loans, and whatnot, Zomato acquired Blinkit.
- On
June 24, 2022, the board of the well-known food company run by Deepinder
Goyal finally gave its approval for Blinkit's acquisition.
- Zomato
had purchased the online grocery delivery
business for $568 million in all-stock terms.
- The
latter's board approved the purchase of up to 33,018 equity shares from
Blink Commerce Pvt Ltd's stockholders.
- This
was approved for a total purchase cost of Rs 4,447.48 crore ($569 mn),
according to the company's BSE report.
- The $1
billion initial valuation of Blinkit was slashed by 43%.
How Does Blinkit Deliver Grocery in 10- Minutes?
Blinkit
declared in June 2021 that it has completely redesigned its delivery operation,
guaranteeing delivery within ten minutes of an online order being placed.
Within the
next 45 days, the well-known online food marketplace guarantees that orders
placed in places where Blinkit is present will be delivered in less than ten
minutes. Across the nation, individuals have expressed extreme disapproval of
Blinkit for allegedly "exploiting" its personnel to fulfil their
10-minute delivery guarantee.
Dhindsa
clarified how Blinkit can deliver food in 10 minutes by pointing out
that one of the company's partner stores is located within 2 kilometres of the
clients, which is a significant advantage.
In addition
to an acceptable number of partner stores in other useful cities like Mumbai,
Kolkata, Bengaluru, etc., the company has more than 60 partner stores in Delhi
and has expanded to over 30 partner stores in Gurgaon.
The company
tries their best to deliver the grocery products the quickest, but there are
several steps taking place in the background,
- The
customers place an order from the website or application
- The
platform connects customers with nearby grocery stores or
supermarkets
- Retail
stores accept the online order request and start packing it
- Blinkit
platform connects delivery providers once the order gets ready to
dispatch
- The
delivery partner takes the order and delivers the same to the customer’s
preferred location
- Based
on the overall experience, customers and delivery providers rate the
service and leave feedback
Business Model of Blinkit
The Blinkit
business model is a skillfully constructed fusion of efficiency and
innovation. Fundamentally, Blinkit functions as an online marketplace where
customers may purchase a variety of goods, from groceries to cosmetics, and
local vendors can display their wares. Here's a closer look at the essential
components of the Blinkit business plan.
Marketplace Platform
BlinkIts
idea of a marketplace where anybody can set up shop has revolutionized the
industry. With the help of this strategy, local merchants and business owners
can expand their reach and offer a wider range of goods to customers.
Strategy Based on Inventory
Blinkit
keeps its inventory in-house, unlike several rivals that rely on joint ventures
with neighbourhood retailers. They can exert more control over the availability
and quality of their products thanks to this calculated move, guaranteeing that
consumers will receive dependable and fresh groceries.
Smooth User Interface
Customers
can shop for groceries with ease because of the user-friendly website and
smartphone interfaces that are part of the Blinkit business model. By providing
features like fast reorder choices and personalized recommendations, the
platform improves the purchasing experience and increases consumer loyalty.
How Does Blinkit Make Money? Revenue Model of Blinkit
Blinkit has
benefited greatly from the new business model by being able to offer customers
exceptional end-user delivery services.
Blinkit has
attained greatness through the skilful application of technology, the presence
of partners, suppliers, alliance partners, and hundreds of products, including
meats, baked goods, and flower delivery.
How does
Blinkit make money? This is the most commonly asked question. Blinkit generates
income from a variety of sources. Among the prominent ones are:
Commission Based Revenue Model
This
represents Blinkit's main revenue stream. As you are aware, it collaborates
with nearby supermarkets and wholesalers who offer their goods on its
marketplace. Blinkit charges a commission for this, which is usually a portion
of the sale price.
Delivery Charges
Every order
placed on Blinkit's platform is subject to a delivery fee. Usually, the
delivery charge is between $2 and $3. Nonetheless, Blinkit provides a range of
specials and discounts that might lower or even waive the shipping charge.
Fees for Subscriptions
Blinkit
Prime is a subscription service that the company provides. For all orders over
INR 4000, delivery is free for Blinkit Prime members. Additional advantages of
Blinkit Prime include discounts on specific products and early access to future
releases.
Promotion
Blinkit
offers advertising space for sale on its network. On Blinkit's website, app,
and delivery trucks, advertisers can insert advertisements.
Partnerships
Blinkit
offers discounts and promotions to its clients by forming alliances with other
businesses. For instance, Blinkit and Amazon Prime have teamed up to provide
free delivery for Blinkit customers on orders over $50 on Amazon.
How Much Does It Cost to Develop an App Similar to Blinkit?
As we
mentioned earlier, the online grocery delivery market in India is booming
because people these days prefer ordering products online rather than standing
in a long checkout queue. On the other side, retail store owners and
supermarkets are also implementing modern technology solutions to fulfil the
rising needs of customers and stay afloat in the competitive market.
Since an
app like Blinkit made its footsteps in the market, every entrepreneur now wants
to have a similar solution for their conventional business setup. Moreover,
they also have questions like how much big giants have spent on their website
and app development like Blinkit.
Every
startup or business must first start from scratch with very little capital to
gain attention and funding from potential investors or the government. But
before they can offer the concept and business plan with a demo—what our
industry refers to as the MVP, or minimum viable product—they must have
something operational.
Since we
have already encountered a market behemoth, we are aware of every detail that
needs to be taken care of to design and release our application. We may compute
an estimated cost and expenses, revenues, profit, and loss by taking into
account all of the project plans, features, modules, etc.
If we
consider the parameters that are needed and important while deciding on cost,
some of the major points are enlightened here for your reference:
- Project
wireframing and prototyping
- Application
design and development
- Marketing
activities
- Third-party
API
- Hosting
and server charges
- Maintenance
charges
If you want
to know how to get a detailed quote, it would be recommended to consult an
experienced on-demand app development company that can assist you in
developing a seamless app like Blinkit that connects users, stores, delivery
providers and admin.
Enter the On-demand Grocery Delivery Market with the Blinkit Like App
Within less
than ten minutes, Blinkit has become the fastest grocery
delivery service provider. The organization has become one of the major
competitors in the market because of its increasing success graph. The success
of this e-commerce is largely due to the solid Blinkit business model.
Convenience, quickness, affordability, and scalability are essential components
of the Blinkit business model that have contributed to a comprehensive presence
and simple consumer attention.
You can
launch a quick-commerce startup or immediate delivery service like Blinkit from
anywhere.
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