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.
Marketing Magic of Blinkit
Blinkit use data like a magic wand to understand what each customer loves, personalizing offers so that every deal feels like a friendly suggestion; and third, they keep the buzz alive by sharing fun posts, cool videos, and heartwarming customer stories on social media, which creates a lively community around their speedy service.
Blinkit uses memes as a playful way to connect with its audience. First, they create funny and relatable memes that mirror everyday life – like the panic of forgetting an ingredient or the thrill of getting groceries in just 10 minutes – which helps people see Blinkit as a friendly, modern brand.
Second, by tapping into trending social media topics and viral challenges, Blinkit keeps its content fresh and shareable, making sure it stays in tune with what’s popular online. Finally, this blend of humor and current trends not only boosts their online presence but also builds a lively community where customers feel understood and engaged with the brand.
Blinkit’s Revenue Model – Explained
It is a clever blend of high-volume sales, smart personalization, and efficient operations – all working together to keep the wheels of quick commerce turning. First, by focusing on rapid, 10-minute deliveries, Blinkit attracts a flood of orders from busy customers who need groceries in a hurry; this high order volume, even with low margins per sale, adds up to significant overall revenue as each order contributes a small profit that scales up quickly.
Second, Blinkit uses data like a magic wand to understand each customer’s tastes and habits, suggesting tailored deals and reminders that encourage impulse buying – think of it as a friendly manner that makes your shopping cart grow with items you didn’t even know you needed, boosting the average order value and deepening customer loyalty.
Third, their revenue is heavily using their strategic partnerships and a smart logistics network: Blinkit teams up with local suppliers and operates small, neighborhood-based dark stores, which keep delivery times super fast and operational costs in check.
This efficient system ensures that even when prices are competitive, the streamlined process helps maintain a positive contribution margin over time.
Together, these three aspects create a revenue recipe that not only fuels Blinkit’s rapid growth but also keeps the customer-focused, and ready to adapt to the ever-changing world of quick commerce.
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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