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Business Model of Blinkit

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394 views4 pages

Business Model of Blinkit

Uploaded by

adityakumar. iabm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Business Model of Blinkit

written by Nisha Garg January 31, 2023

Blinkit is an Indian online grocery delivery service. The company was founded in
2013 and is headquartered in Gurugram, India. It operates in various cities across
India, providing customers with a wide range of products, including groceries, fresh
fruits and vegetables, household essentials, and personal care items.

Customers can place orders through the Blinkit website or mobile app, and the
company delivers the products to their doorsteps. Blinkit operates through a network
of local shops and merchants and uses its delivery fleet to ensure the timely delivery
of products to customers. The company aims to provide its customers with a
convenient, hassle-free grocery shopping experience.

When Blinkit was started, it was named Grofers. Grofers was just an online grocery
app. The company took a pivot in the business strategy for the new-age consumers,
shifted its focus on quick commerce, and became a 10-minute grocery delivery space.

About the founders


Blinked (formerly known as Grofers) was founded by Albinder Dhindsa and Saurabh
Kumar in 2013. They became acquainted while working at Cambridge Systematics in
the late 2000s and collaborated to join the grocery delivery sector. Their purpose was
to overcome the challenges connected with the sector’s disorganised structure (both
on the client and merchant end). The startup began in Delhi NCR before expanding to
other locations in India.

Acquisition of Blinkit by Zomato


Zomato announced its all-stock acquisition of Blinkit on June 24, 2022, for $568
million. The acquisition was consummated on August 10, 2022. The main reason
behind this acquisition is the strategic objective of Zomato, which always has been
quick commerce. Quick commerce is expanding fast both in India and abroad, as
customers have discovered great value in the speedy delivery of groceries and other
necessities. So, the parent organisation of Blinkit is not Zomato.
Business Model of Blinkit
Blinkit was once known as Grofers, an on-demand delivery service of everyday items.
It began as a hyperlocal delivery service for convenience and to bridge the gap
between local retailers and the residents. Three pillars of Blinkit’s business model are
as follows:

Customers
The origin of the company concept is mainly based on people who find it challenging
to go to the market for daily shopping physically. Working individuals, older persons,
students, and the sick are all included.

Local Vendors
Blinkit has partnerships with local vendors. Especially those with a little marketing
budgets to expand their business reach and insufficient labour for doorstep delivery.

Delivery team
Blinkit has a staff of delivery agents assigned to each neighbourhood. They work with
stores to guarantee that everyday necessities are delivered to clients’ doors on time.

Inventory Based Model of Blinkit


The inventory-based business strategy has greatly aided Blinkit’s reputation in the
Indian grocery delivery market. The initial model of Grofers (now Blinkit) was based
on the local shops and gained less popularity than it was supposed to. Meanwhile,
competitors were also entering the online grocery delivery sector. In need of the hour,
Blinkit had to pivot from its initial model to an inventory-based one.
In the initial model, customers’ grocery items were delivered straight from the local
store. But in the inventory-based model, the groceries are firstly transported to a local
warehouse. Then the inventory team checks to see if the food products are of standard
quality. It is packed and sent to a buyer only once they are satisfied with the food
quality.

How Does it Work?


Blinkit is an online grocery delivery app. It promises to deliver products from a wide
range of almost 7000 products in just 10 minutes. It is currently operating in more
than 30 cities all over India. To make delivery possible in just 10 minutes, BlinkIt has
store partners almost in a range of 2 km.

For example, in delhi itself, they have over 60 partner stores. They have also worked
hard on their in-store planning and tech. They have increased their efficiency and
claim to pack the order in just 2.5 minutes of the order being placed.

How Blinkit Makes Money?


In the middle of the delivery procedure from a warehouse, there are numerous stages.
The list is extensive from logistics, delivery partners, suppliers, vendors, and
technology and merchant partners. However, this is where the money is coming from.

Blinkit keeps track of the quality of all groceries purchased in a warehouse. This
allows them to handle the whole procedure more efficiently. When a customer places
an order on the Blinkit mobile app, it links numerous brands and local stores. Blinkit
takes an 8% – 15% fee in the process. Furthermore, Blinkit is investing in private
brands, already generating significant income streams.

Conclusion
Blinkit, formerly known as Grofers, is an instant online grocery delivery service. It is
currently operating in more than 30 cities all over India. In every city, they have
partners almost in the range of 2 km. In delhi itself, they have over 60 partner stores.
It promises to deliver a wide range of products in just 10 minutes. However, it was not
always like this. Initially, it targeted to bridge the gap between the customer and the
local customer. But it had many drawbacks back then. So, it shifted to an inventory-
based model, which was a big hit. Through this model, they can now ensure the
quality of the goods delivered to the customer.

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