Haven’t we all seen blinking delivery boys all around our neighborhood on their bikes? All of you must be wondering what is Blinkit? Formerly known as Grofers, the brand was rebranded in December 2021, and its growth till now has been one of cherish. The main aim was to enhance the company motto of “delivering groceries in the blink of an eye.”
The E-commerce startup giants have raised a valuation of $1 billion as of march 2022 and operate in more than 30 cities across India delivering groceries, snacks, and bakery items to your doorstep in 10 minutes. That’s right, with such speedy service I also wouldn’t want to step out on a cozy rainy day to buy groceries.
The recent conditions like the COVID-19 pandemic and the busy lifestyle of people to a certain extent had helped this industry thrive. Today we don’t have to step out every day to get vegetables or snacks. Nor do we need to stand in a long line at Big Bazaar on a Wednesday to avail the discounts. We can order all our essentials with just one click of the phone.
How does the 10-minute delivery work?
On a bad day you can be on the same spot in the Bangalore traffic, but imagine your groceries reaching home earlier than you.
Blinkit has a partner store and warehouses within 2km of customers. Blinkit has also improved its capital requirements so now with the improved technology it can pack any order in 3 minutes.
Blinkit formerly grofers also has not reported a single accident despite the 10-minute delivery schedule just showing us how organized and smooth their service is. This feat achieved by a startup in India should be celebrated and given more recognition.
Revenue Model of Blinkit
Like all in the industry and its predecessor blinkit also has a commission-based revenue model. They can be called more of a delivery service rather than a manufacturing one as they buy products from local merchants with whom they have a tie-up and deliver it to our doorstep within the stipulated time.
The commission for orders below Rs 700 is 8% – 15% and for orders above that, it charges 12% – 15%.
Blinkit – The bright future
Blinkit already has a 13% market share and stands behind Big Basket with 37% and Amazon with 15%. Blinkit positively hopes to increase its market share to 18%-20% this year. The revenues show blinkit sales are booming in FY 2021 and are expected to reach the Rs 3000 Cr mark in revenue this year with the quarterly results awaited.
Post covid all e-commerce platforms have shown a spurt of growth will the purchasing power of people restored people are readily happy to spend to maintain the equilibrium. To some extent, the pandemic kick-started all e-commerce industries, especially delivery ones. In a time when we feel unsafe or scared to go out, we can get groceries delivered with disinfectants.
Zomato, who acquired blinkit to get into the delivery industry, has offered $ 150 million to Blinkit as debt and as a parent company, Zomato will be supportive. Now the vision of Blinkit can shape into reality as it has funds, resources, and a market to thrive in.
Conclusion
We live in a country where startups are not encouraged and things that are too good are criticized. In my opinion, we should be happy and more supportive of our startups as each startup like Blinkit that becomes a unicorn inspires 1000 other startups to grow.
Sources: Startuptalky.com and Livemint.com
