On January 20, foodtech giant Zomato released its financial results for the third quarter (Q3) of the fiscal year 2024–2025 (FY25). 57% Profit Slumps in Q3 of FY25: The foodtech giant’s consolidated net profit fell 57.2% to INR 59 Cr from INR 138 Cr in the same quarter the previous year. Profit fell 66% sequentially from INR 176 Cr in Q2 of FY25. Among the main causes of the drop in the bottom line were a slowdown in the food delivery market and an increase in Blinkit’s adjusted EBITDA loss as a result of growing competition in rapid commerce. According to Akshant Goyal, Zomato’s chief financial officer, the company’s rapid commerce division would continue to lose money in the foreseeable future. As the company keeps expanding its locations, its networks might have to handle more underutilised stores, which will affect short-term earnings in the upcoming quarter or two. However, these investments will also probably keep Gross Order Value (GOV) growth far over 100%, at least in FY25 and FY26.
Financial Outlook of Zomato
In the meantime, Zomato‘s operational revenue increased by more than 64% to INR 5,405 Cr in the reviewed quarter, up from INR 3,288 Cr in the same period the previous year. It increased 12.6% sequentially from Q2 FY25’s INR 4,799 Cr. With ESOP expenses excluded, Zomato’s consolidated adjusted EBITDA increased 120% year over year (YoY) to INR 285 Cr in Q3 FY25. This was mostly due to gains in the food delivery adjusted EBITDA margin (as a percentage of GOV), which increased from 3% to 4.5% during the reviewed quarter. From INR 2,062 Cr in Q3 FY24 to INR 2,413 Cr in Q3 FY25, the segment’s adjusted revenue increased by 17%. In Q3 FY25, the food delivery vertical’s GOV increased 17% year over year to INR 9,913 Cr.
The company had anticipated 20%+ YoY GOV growth, which this GOV growth fell just short of. Additionally, the food delivery GOV climbed 2% sequentially, which was less than the 5% sequential rise in Q2 FY25. Rakesh Ranjan, the CEO of Zomato’s food delivery division, provided an explanation for the slowdown in the food delivery vertical. He stated that Zomato is currently seeing a widespread slowdown in demand that began in the second part of November. Despite the present slowdown, the company is optimistic that it will soon recover and is still confident in the long-term outlook of 20%+ yearly GOV growth in the industry due to the solid foundations.
The Sustainability of the 10-Minute Food Delhivery
In December 2024, Blinkit released Bistro, a 10-minute meal delivery app. Later this month, Zomato also launched a delivery service called Bistro that takes 15 minutes.
Zomato CEO Deepinder Goyal commented on this emphasis on meal deliveries that take ten to fifteen minutes, stating that research indicates that reducing delivery times generates additional demand for restaurant food and results in “meaningful expansion” of the platform’s demand.
“We think deliveries of ten to fifteen minutes can result in something like.” According to Goyal, “This is also the reason we tried Zomato Instant, but we were unable to identify the best business plan and had to shut it down.”
According to him, the goal of the Bistro is to appeal to the sizable “in-office market,” which demands easy access to meals, snacks, and drinks in ten to fifteen minutes. Although he acknowledged that vending machines and on-site vendors currently serve this market, he said that the current food delivery solutions do not fairly serve people across geographic areas. However, Zomato is presently working to determine whether Bistro is a good fit for the market.
In order to create a proof of concept, Bistro is building infrastructure and collaborating with chefs, producers, food experts, and eateries. “The company hopes that this platform could be replicated by different restaurants and cuisine types where demand exists,” Goyal continued, adding that if the brand is successful in finding product-market fit and profitability.
A 10-minute ambulance service has now been introduced by Blinkit, Zomato’s rapid commerce division. In a post on X, Albinder Dhindsa, cofounder and CEO of Blinkit, stated that the firm is making the initial move to address the issue of delivering prompt and dependable ambulance service in several locations. He stated that the ambulance service, which would begin with five vehicles in Gurugram on January 2, will soon be extended to other locations. Users will “start seeing an option to book a Basic Life Support (BLS) ambulance” on the app, according to Dhindsa. AEDs (automated external defibrillators), oxygen cylinders, stretchers, monitors, suction machines, and necessary emergency medications and injections are among the life-saving devices he said the ambulances are outfitted with.
Operating at Affordable Cost
In addition, every ambulance has a qualified driver, a paramedic, and an assistant. According to the CEO, the brand will provide this service at a price that is reasonable for consumers and make long-term investments to truly address this pressing issue. Dhindsa added that the business is carefully developing the service in order to roll it out in the key cities in the upcoming two years. Over the past year, Blinkit has been progressively adding new features and extending its services to further cities. But according to Dhindsa, the new launch is more about finding a long-term solution to this “critical problem” than it is about making money.
Blinkit Continues to Rollout New Initiatives
In addition to launching its services in Jammu earlier this week, Blinkit also introduced a function that lets consumers remove their order history. Over the past several years, the rapid commerce market has seen a dramatic increase in popularity throughout the nation. In light of this, Blinkit generated INR 1,156 Cr in revenue during the second quarter (Q2) of the fiscal year 2024–25 (FY25), which is more than twice as much as the INR 505 Cr it generated during the same period last year. Additionally, it was able to reduce its adjusted EBITDA loss from INR 125 Cr in Q2 FY24 to INR 8 Cr in the reporting quarter.
A lot of experts are worried about the rapid commerce model since they think the ten-minute delivery won’t be profitable. However, Blinkit’s most recent figures seem to have disproved this theory. Many people have already hurried to predict that Blinkit will soon be the group waggon puller. Zomato’s other diversifications may surprise as well, in addition to the near-duopoly that Swiggy and Zomato have been experiencing in the Indian market lately.
The fast commerce market in India is estimated to be worth $3.34 billion and is expected to expand at a compound annual growth rate (CAGR) of more than 4.5% to reach $9.95 billion by 2029. Despite this growth, statistics indicate that the industry only accounts for 7% of its projected $45 billion total addressable market, indicating significant room for expansion.
Blinkit is currently available in some areas of Jammu as part of Zomato’s plan to extend its rapid commerce business to Tier II cities. In a LinkedIn post, Blinkit’s CEO and cofounder Albinder Dhindsa stated that three of the company’s shopfronts are currently open in Jammu and have begun shipping to neighbouring towns. The stores serve around ten surrounding localities and are situated in Trikuta Nagar, Roop Nagar, and Akhnoor Road. Notably, Blinkit introduced its services in Bathinda, Haridwar, and Vijayawada after going live in Kochi just before Onam. It’s important to remember that Blinkit has been actively introducing new features to keep one step ahead of its rivals in the quest for rapid commerce.
Blinkit’s Newly Launched Initiatives
The Zomato-owned company launched a new app, Bistro, in pilot mode earlier this month, marking its entry into the quick food delivery market. Blinkit’s Bistro, which is currently open in some areas of Gurugram, provides 15-minute delivery for meals, snacks, and drinks, including tea and coffee. Last month, a media outlet exclusively revealed that Blinkit was testing a huge order fleet in the Delhi NCR area. This fleet may be used to place orders for more expensive items like a PlayStation 5 or an air purifier or geyser. To enable firms to post on the fast commerce platform and begin selling their goods without having to communicate with the platform or any middlemen, Blinkit introduced a “Blinkit Seller Hub” in October.
Blinkit’s Financial Report
Financially speaking, Blinkit’s second quarter revenue of INR 1,156 Cr in the fiscal year 2024–25 (FY25) is more than twice that of INR 505 Cr in the same period last year. Additionally, the company was able to reduce its adjusted EBITDA loss from INR 125 Cr in Q2 FY24 to INR 8 Cr in the reporting quarter. Due to India’s rapid growth in commerce, Blinkit plans to open 2,000 dark stores by the end of FY26. By the end of the second quarter of FY25, Blinkit had 791 dark outlets nationwide.
The fast commerce market in India is estimated to be worth $3.34 billion and is expected to expand at a compound annual growth rate (CAGR) of more than 4.5% to reach $9.95 billion by 2029. Despite this growth, statistics indicate that the industry only accounts for 7% of its projected $45 billion total addressable market, indicating significant room for expansion.
Blinkit, Zomato’s fast commerce subsidiary, has implemented a novel feature that enables users to eliminate order history from their accounts. Albinder Dhindsa, the CEO and originator of Blinkit, disclosed the advancements on LinkedIn, a networking platform. Dhindsa stated in a post that the feature was introduced last week and that over one million orders have been deleted since its implementation. Customers can now delete orders from their Blinkit order history. Since the brand implemented this feature last week, 104,924 orders have been eliminated. Dhindsa highlighted the feature with a tagline, “A new year, a new order history.”
Keep in mind that if an order is deleted, it cannot be restored, and the customer’s account will no longer include the details. At the moment, each order must be deleted separately; there is no way to delete several orders at once. Orders that are more than a year old can also be deleted.
Blinkit Showing its Dominance in Quick Commerce Sector
The most recent offering comes weeks after Blinkit strengthened its top management by appointing Vipin Kapooria, a former executive from Flipkart and OYO, as its new chief financial officer (CFO). This year, the giant of rapid commerce has launched numerous new products. It launched a new app called Bistro earlier this year, marking its entry into the rapid food delivery market. Additionally, it introduced “Blinkit Seller Hub,” which enables vendors to list themselves on the site, and started testing huge order fleets. Additionally, it introduced fast delivery of passport-sized pictures and the return option for items like apparel and shoes.
Expanding its Operations in Jammu
In keeping with Zomato‘s plan to extend its rapid commerce company to Tier II cities, the development coincided with Blinkit‘s expansion to Jammu. Over the past several years, the rapid commerce market has seen a dramatic increase in popularity throughout the nation. In light of this, Blinkit generated INR 1,156 Cr in revenue during the second quarter (Q2) of the fiscal year 2024–25 (FY25), which is more than twice as much as the INR 505 Cr it generated during the same period last year. Additionally, it was able to reduce its adjusted EBITDA loss from INR 125 Cr in Q2 FY24 to INR 8 Cr in the reporting quarter.
A lot of experts are worried about the rapid commerce model since they think the ten-minute delivery won’t be profitable. However, Blinkit’s most recent figures seem to have disproved this theory. Many people have already hurried to predict that Blinkit will soon be the group waggon puller. Zomato’s other diversifications may surprise as well, in addition to the near-duopoly that Swiggy and Zomato have been experiencing in the Indian market lately.
Amazon promises to provide daily necessities in 15 minutes or less as it makes a daring entry into India’s expanding rapid commerce business. Later this month, the test programme will launch in Bengaluru, bringing competition to a market already dominated by Swiggy Instamart, Zepto, and Blinkit.
Samir Kumar, the national manager for Amazon India, made the announcement at the company’s annual Smbhav event in Delhi. He explained that the test experiment is intended to satisfy the need for quicker deliveries and emphasised Amazon’s emphasis on “selection, value, and convenience.” The service’s name, which is allegedly “Tez,” has not been verified, though.
Dark stores, which are tiny warehouses that only fulfil online purchases, will be used by the firm to support its operations. Although Amazon has not disclosed the number of dark stores it plans to open or the cities that will follow Bengaluru, media reports reveal that future growth will be contingent on the pilot’s success.
Why Amazon Wants to Test the Waters of Quick Commerce Space?
In India, quick commerce is expanding quickly due to shifting consumer preferences and an increase in the need for convenience and quickness. Ninety-one percent of Indian internet shoppers are aware of rapid commerce platforms, and over half have recently utilised them, according to a Meta research.
According to the survey, 57% of consumers are spending more money on rapid commerce platforms, with the most popular categories being food and personal care items. Quick commerce concentrates on daily necessities that consumers need right away, in contrast to traditional e-commerce, which is frequently visited for gadgets and fashion items. As consumers depend more and more on fast commerce platforms to restock on fresh produce, dairy, and other essentials, the grocery sector has benefitted greatly from this trend. This is a big change because traditional e-commerce typically takes longer to provide these kinds of things.
Entry Made Late But With Purpose
Amazon is joining the rapid commerce space later than its competitors, who have already taken a sizable portion of the industry. With the use of robust networks of underground stores, businesses like Blinkit, Zepto, and Swiggy Instamart can supply groceries and other necessities in a matter of minutes.
Kumar said that Amazon takes its time making decisions but strives to create high-quality products when it does, which is why the firm took so long to launch. Amazon India wants to make sure that its employees and customers are protected. India’s quick commerce market is expected to be worth $6 billion and is expanding quickly. Instead of the conventional one- or two-day possibilities, consumers are increasingly turning to platforms that guarantee ultra-fast deliveries, particularly in urban regions.
Amazon already offers a two-hour grocery delivery service called Amazon Fresh. The 15-minute service might provide it with a convenience advantage and draw in more clients from its current clientele of millions, which includes Prime subscribers.
Locking Horns With Market Leaders
The market for established players like Blinkit, Zepto, and Swiggy Instamart may be disrupted by Amazon’s arrival. These players have made extensive use of their first-mover advantage and existing networks. With its client base, financial resources, and logistics know-how, Amazon might really challenge their hegemony.
But it won’t be simple. Fast commerce necessitates perfect execution, which includes competitive pricing, effective delivery systems, and robust inventory management. In a field where competitors already dominate, any mistakes could make it hard for Amazon to get traction.
HDFC Securities, a broking firm, downgraded Swiggy from “add” to “reduce”; however, it raised its target price from INR 430 per share to INR 470. This would indicate a 9.2% decline from the stock’s last closing price. Swiggy’s stock closed on 4 December’s trading session on the BSE at INR 518.10 per share. During 5 December’s intraday trading session, the stock continued to rise, rising more than 11% to INR 576.95 on the BSE.
Although Swiggy’s key performance indicators in the quick commerce and food delivery areas are improving, the company still trails Zomato, according to a recent report from analysts at HDFC Securities. According to the broking, Swiggy recorded a 4.8% quarterly increase in monthly transacting customers in the food delivery segment in Q2 FY25, while gross order value increased 5.6% on a quarter-over-quarter basis to INR 7,190 Cr. The company’s vigorous promotion of its subscription service, Swiggy One, was primarily responsible for this.
Zomato is Still Leading the Race
According to HDFC Securities, Swiggy continued to lag behind Zomato in the food delivery sector across all KPIs in H1 FY25. In H1, Zomato’s GOV increased by 24%, but Swiggy recorded a 14% growth in the food delivery market. Furthermore, the broking claims that Instamart, Swiggy’s rapid commerce division, is still trailing its Zomato rival Blinkit in terms of growth and unit economics.
HDFC Securities emphasised that although Swiggy’s dark shop network has seen an improvement in order density, Blinkit has made more progress in terms of unit economics at a comparable scale. The broking stated that although the increase in client acquisition is positive, the present market pricing indicates that the path to convergence in rapid commerce with Blinkit is inevitable.
Current Financial Structure of Swiggy
Swiggy was downgraded by HDFC Securities after the Sriharsha Majety-led company’s operating revenue increased 12% QoQ to INR 3,601.45 Cr, but its net loss worsened sequentially by more than 2% to INR 625 Cr in Q2 FY25. Swiggy stated in its Q2 FY25 investor presentation that it aimed to achieve a consolidated adjusted EBITDA profitability by Q3 FY26. Additionally, a new subsidiary that will function in the “sports activities and amusement and recreation activities” section is being established by the foodtech company.
Even if the food delivery market is more established and less competitive, Swiggy’s poor performance highlights the difficulties it faces, according to another broking business, HSBC Securities and Capital Markets (India). Swiggy was valued at $16 billion by HSBC, which included $1.3 billion in cash and investments, $10 billion for rapid commerce, and $5 billion for food delivery. Nevertheless, it does not anticipate that the overall business will achieve EBITDA breakeven before the fiscal year of 2028.
What was essential to push Grofers forward and grow one of the biggest eGrocery players in the Indian market in such a short duration of just 4 years has been the entrepreneurial spirit and the foresight that Albinder Dhindsa carries for the market.
Co-founder Dhindsa kept running the day-to-day activities and strategic moves at the helm of affairs within Grofers. From the initial concept to its inception, raising funds to set up the company – Dhindsa led in strategizing the long-term business model and setting up viable supply chains.
With a visionary like Dhindsa at its helm, Blinkit (previously Grofers) grew more than 4 times in India and recently crossed over 100 crore monthly GMV or Gross Merchandise Value. Presently, even though acquired by Zomato, Blinkit is one of the biggest players in the eGrocery industry, especially in the Next Day Delivery Model.
Albinder hails from Patiala in Punjab. He completed his Bachelor’s program at IIT Delhi and started his career as a transportation analyst at URS Corporation, where he worked for 2 years. Later, he joined Cambridge Systematics as a Senior Associate and worked for more than 3 years.
In 2010, he went to the University of Columbia, United States, to pursue his MBA. Here, Dhindsa joined UBS Investment Bank as an associate and worked for 3 months.
After completing his MBA, he returned to India and knew he wanted to work in the food domain. He entered the Indian workforce as the new Head of International Operations at Zomato. Here he gathered enough knowledge and experience to begin working on his dream project, Grofers.
As Dhindsa worked in the food delivery business, he realised that there were loopholes in the logistics sector. While brainstorming with his partner, Saurabh Kumar, he saw that most of the transactions between the local merchants and consumers were mostly unorganized.
As he met and spoke to more and more local merchants with a good customer base, he realized that they struggled to deliver quality goods in a reliable manner. That was the ‘Eureka!’ moment for Dhindsa as he dreamt of a startup that would help with daily problems. That was when the concept of Grofers was born.
According to Dhindsa, the initial purpose of Grofers was to offer on-demand pick-up and drop service from shops around the same neighborhood. The shops in question were mostly pharmacies, grocery stores, and restaurants. Their ideology was to provide customers with a one-stop solution for local everyday requirements.
After realizing that they needed to confine their business only to pharmacies and groceries (there were enough food delivery apps already in the market). They then rebranded their startup as Grofers – a super-local logistics agency.
Albinder Dhindsa – Major Challenges Faced
Towards the end of 2015, Grofers was running at a loss of INR 225 crores with a revenue of only INR 143 crores. For months, Grofers kept hitting losses, but that changed when they launched a mobile app in 2015. Sadly, the scale-up operation had gone haywire and Grofer’s suffered tremendous losses.
Again, Dhindsa identified the loophole and resolved the issue. The problem lies with a complicated and broken supply chain. To help solve this problem, the Grofers entrepreneur set up their own supply chain.
When working for Zomato, Albinder realized that there was a market gap when it came to connecting local merchants with consumers. The idea to create a one-stop solution for all local needs was born and the hyper-logistics company, Grofers, came into existence. Under his leadership, the company was named one of the top 10 start-ups by YourStory.com and was listed in the top 10 promising Gurgaon-based start-ups by IndianWeb2.com.
Grofers faced multiple issues and at one moment was running at a loss of INR 7 Crore on revenue of INR 5 crore. However, Albinder came up with the idea to have Grofer’s own warehouse and supply chain management. During the initial stage, investors did not want to join a business that did not return any profits. But Dhindsa and his partner were able to convince some investors. They started by setting up over 60,000 sq. ft. storage facilities in Gurgaon, Delhi, and Bangalore. Smaller warehouses of 20,000 sq. ft. were set up in cities like Jaipur, Hyderabad, and Chennai.
With a new and improved supply system, business started booming and the average order value shot up from just INR 750 in 2016, to INR 1300.
Albinder Dhindsa – Business Model
Initially, Grofers (now Blinkit) was started as a Business 2 Business (B2B) model but later shifted to a Business 2 Customer (B2C) model. The best aspect of starting Grofers was the endless possibilities of using a hyper-local delivery network. By closing over 500 deliveries per day, Grofers soon became a formidable competitor in the market. By November 2021, the company was delivering 125,000 orders every day under the Grofers’ founder leadership.
After being in operation as an online grocery delivery service, Grofers introduced its express delivery system in India. This was done by building dark stores across multiple cities. In July 2021, the company reported a delivery of over 7000 groceries in under 15 minutes in Gurgaon. A month later after completing over 20,000 under-15-minute deliveries in over 10 cities, it introduced its 10-minute delivery program in over 12 cities. In December 2021, Grofers changed its brand name to Blinkit lining it with its vision to embrace quick-commerce.
But in 2022 in an effort to cut down their burn rate, Blinkit fired nearly 5% of their total workforce. The year before Zomate acquired a 10% stake in the company, and following multiple discussions in June 2022, Zomato acquired Blinkit for $568 million in an all-stock deal. The acquisition was completed in August 2022.
Albinder Dhindsa – Famous Quotes
“We are not too worried about competition entering the space. The space is not small. We provide customers with a service they didn’t know they needed. We will stay focused on the customer.”
“You invest in people, you don’t invest in ideas.”
“Each city is different. Every community requires customization.”
“Our motivation for starting this business was based only on convenience, but we realized soon enough that there are other reasons too why people come online to buy from us.”
FAQ
Who is the CEO of Blinkit India?
The CEO of Blinkit India is Albinder Dhindsa.
Where is Albinder Dhindsa from?
Albinder Dhindsa, the CEO of Blinkit, is originally from Patiala, Punjab, India.
Is Blinkit bigger than Zomato?
Blinkit is currently valued higher than Zomato’s food delivery business, according to Goldman Sachs, with a share price of INR 119 for Blinkit compared to INR 98 for Zomato.
What is Albinder Dhindsa’s education?
Albinder Dhindsa completed his education at IIT Delhi, where he earned his undergraduate degree before pursuing an MBA at Columbia Business School
According to a media report, Blinkit, Zomato’s rapid commerce division, has started a pilot programme to test a large-order fleet intended for delivering heavier consumer goods within the Delhi NCR area.
Geysers, air purifiers, luggage bags, and PlayStations are among the things handled by the fleet, according to the report, which guarantees delivery within a 10-minute interval.
Aligning with the Concept of Express Dark Stores
As the rapid commerce industry faces growing competition to increase average order values (AOV), the initiative is consistent with Blinkit‘s stated aspirations to create express dark stores for 30-minute delivery of high-value items. As of right now, Blinkit’s AOV is INR 660, up 8% from INR 607 during the same quarter previous year. Zomato refused to share more information regarding the experimental programme as stated in the report.
Swiggy’s Plan
The move coincides with rivals in the rapid commerce market investigating new product categories. According to recent remarks made by Swiggy CFO Rahul Bothra about the company’s impending IPO, rival Swiggy Instamart is creating its own infrastructure for longer delivery times for some categories, but it intends to concentrate on kitchen appliances rather than big electronics.
A broader deployment in other major metropolitan regions where Blinkit works may result from the pilot’s success in Delhi NCR.
Competition in Quick Commerce Space Getting Stiffer
Quick Commerce and e-commerce platforms are engaged in a fierce battle in the thriving online retail market, blurring the boundaries between their business models and encroaching on one another’s territory as part of their expansion strategies.
For example, fast commerce platforms such as Swiggy, Instamart, Zepto, and Zomato’s Blinkit used to be recognised for delivering groceries and necessities in a matter of minutes, but they have since expanded into other categories, including apparel, cosmetics, toys, and presents. Conversely, e-commerce giants like Amazon intend to join the q-commerce market, and Flipkart has already done so, offering product delivery in less than one hour.
Customers’ purchasing habits have changed as a result of this progression; they now anticipate that every good, from skincare to gifts to dairy products, will arrive at their door in a matter of minutes. The competition’s ultimate winners are shoppers who value convenience.
In 2020, it all began with the prompt delivery of groceries, food, and other necessities. However, by introducing a variety of categories like fashion, beauty, electronics, toys, home appliances, kitchen supplies, and more, rapid commerce titans like Blinkit and Zepto are stepping into the world of e-commerce.
By strengthening the rapid commerce platforms, this plan will make it more difficult for conventional kirana stores and e-commerce competitors Flipkart and Amazon to compete. Expanding their logistics network beyond groceries and necessities calls for greater manpower as well as the availability of dark stores to hold a high number of SKUs for quicker last-mile deliveries.
The All India Consumer Products Distributors Federation (AICPDF) reports that over 2 lakh local “kirana” (general) stores have closed in the last 12 months as customers increasingly use fast delivery services like Blinkit and Zepto. According to various reports, the AICPDF blames these closures on the fast commerce industry’s explosive growth and the economic downturn. It plans to present the findings to the Ministry of Commerce and Industry and the Ministry of Finance in the coming days in order to request their action.
The largest organisation in India, the AICPDF represents 4 lakh distributors of fast-moving consumer goods (FMCG) for well-known corporations like Nestle India Ltd., Dabur India Ltd., and Hindustan Unilever Ltd.
Major Metro Cities Witness the Worst Impact on Businesses
Kirana shops in urban areas have been the most impacted, according to the industry group. Metro areas were home to about 45% of the 2 lakh shuttered kirana shops. 30% were Tier 1 cities, while 25% were Tier 2/3 cities.
According to Dhairyashil Patil, national president of the AICPDF, kirana shops, which have traditionally prospered through competition, including the rise of supermarkets, now face an existential risk as a result of the rise of rapid commerce and the economic slump. He claimed that in order to attract clients, quick commerce companies are using deceptive pricing, which involves offering steep discounts and selling below cost. This has led to an unequal playing field, which is hurting the clientele and financial success of kirana shops.
Methods Used by Quick Commerce Platforms That Are Anti-Competitive
The AICPDF requested last week that the Competition Commission of India (CCI) take action against Blinkit and Zepto, two rapid commerce platforms, for engaging in anti-competitive behaviour. They claimed that these platforms participated in unlawful pricing and monopolistic practices, as well as running underground shopfronts to get around inventory rules. Additionally, AICPDF alerted the Ministry of Road Transport and Highways about the use of possibly uninsured private vehicles for delivery by fast commerce enterprises. Furthermore, they expressed their worries to the Ministry of Health and Family Welfare that these activities compromised food safety by breaking the rules set forth by the Food Safety and Standards Authority of India (FSSAI).
Online Retailers Already Under Competition Commission’s Scanner
These developments coincide with the Competition Commission of India’s ongoing investigation into online retailers for alleged unfair activities, including predatory pricing. According to an internal study by the CCI, e-commerce giants Flipkart and Amazon India broke antitrust laws by favouring some sellers on their platforms. In a similar vein, the AICPDF requested that the antitrust body look into three rapid commerce companies for suspected unfair pricing: Zepto, Swiggy Instamart, and Blinkit from Zomato. The federation contended in its letter that many consumer goods companies abandon traditional stores in favour of direct ties with these businesses, weakening delivery standards that have been in place for decades. Quick delivery platforms’ “unchecked” growth is making it “impossible for traditional retailers to compete or survive,” the company told CCI.
The government will “give a serious thought” to protecting the interests of traders hurt by rapid commerce and e-commerce companies’ exploitative pricing strategies, according to Finance Minister Nirmala Sitharaman’s statement on September 17. Similar worries regarding the e-commerce industry were also voiced by Union Commerce and Industry Minister Piyush Goyal, who emphasised the necessity for these platforms to “operate fairly” within the nation.
In a LinkedIn post, Blinkit Chief Technology Officer Sajal Gupta announced the debut of Seller Hub, the seller programme for Zomato’s rapid commerce platform, on October 23, 2024. This business structure is based on Fulfilled by Amazon (FBA), which is an e-commerce service offered by Amazon.
Brands and Sellers Can Onboard Hassle Free
Brands and sellers will be able to onboard the rapid commerce platform without interacting with a middleman thanks to the Blinkit Seller Hub. It provides services including advertising, catalogue and pricing management, dark store-wise availability, and inventory tracking.
According to Gupta, the company’s goal was to develop a seller programme in fast commerce that was far superior to all others, and the original FBA Amazon has always served as its benchmark. In order to achieve this, the firm has introduced Blinkit Seller Hub, which allows brands to sell through Blinkit entirely on their own without interacting with the company or any middlemen (though Blinkit is available if companies require it). “We think that by developing technology that offers companies greater authority and control over their online presence, we can better serve the community of brands.” According to Gupta, more than 200 companies currently have access to their Seller Hub, and the firm wants to expand that number as soon as the necessary document verifications are completed.
The Recent Developments of Blinkit
In order to solve the crucial problem of size and fit that online buyers encounter, Blinkit recently launched a new service that permits returns and exchanges for apparel and footwear within ten minutes in a few Indian cities.
Blinkit currently has 791 dark stores, which are micro-warehouses that allow for 10-minute delivery, as of September 30. At the end of June, the company had 639 stores. By the end of this fiscal year, the company aims to have 1,000 dark stores and, by the end of 2026, 2,000. It is attempting to reach Tier-II and Tier-III cities with its services. According to reports, Blinkit fulfilled 92.9 million orders during the July–September quarter, generating a gross order value (GOV) of almost INR 6,000 crore.
Blinkit’s EMI Option
Customers may now divide payments for purchases over INR 2,999 thanks to Blinkit’s EMI (Equated Monthly Installments) option. All orders, with the exception of those that contain gold and silver coins, will have this option.
The goal of Blinkit’s new EMI feature is to increase the number of users on its site and encourage larger transactions. This option can facilitate larger orders since more and more customers rely on rapid commerce for household goods, groceries, and other commodities. According to specialists monitoring this market, allowing customers to stretch payments over time may also result in higher-value transactions.
Adding EMI as a payment option fits with Blinkit’s strategy of growing its clientele and fostering customer loyalty. Companies like Blinkit, Swiggy Instamart, and Zepto are fighting for market share in the fiercely competitive world of quick commerce. Blinkit aims to raise its average order value—a crucial indicator of its growth strategy—by enabling these kinds of transactions.
Nitin Konde
