If you thought that only Germany-based Gorillas could swiftly serve people, you are wrong! You might be living under a rock if you said you do not know about Blinkit. Blinkit is an on-demand grocery delivery service in India. It has rechristened itself Blinkit by its tagline, Let's Blink It. This on-demand grocery delivery was previously called Grofers. Blinkit (Previously Grofers) has made lives easier by delivering a wide variety of goods to our doorsteps, including groceries, bakery items, baby care items, etc. This on-demand grocery service provides more than 3000 products at prices lower than supermarkets every day. Blinkit delivered 1.25 lakhs orders every day by November 2021.
Today, Blinkit boasts total funding of $1 billion and has a turnover of $302.98 mn. Suppose you are a startup that wants to make it big like Blinkit, a supermarket in India. In that case, it is beneficial to read about what Blinkit is, How it works, and its revenue and business models. Also, even if you are a market player, reading about Blinkit's business model will not be in vain.
The company itself changed its business model. The new one has only made Blinkit scale great heights; you can learn a few things and incorporate them into your existing business model. So brace yourself; we are about to start this journey of knowing about Blinkit.
What is Blinkit?
Saurabh Kumar and Albinder Dhindsa founded Blinkit in December 2013 as an eCommerce company supplying goods to people's doorsteps. Blinkit is based in Gurugram and has completely revolutionized the retail experience. In a nutshell, Blinkit is an e-commerce marketplace, making your daily shopping more effortless than before. It lets shoppers shop from their favorite stores in their neighborhood and get quick delivery. With just a few taps, people can purchase groceries, fruits & vegetables, bakery items, flowers, meats, pet care, baby care, and cosmetics products.
How does Blinkit work?
Blinkit has rebranded itself and has bestowed the delivery Within 10 minutes facility on its users. Serving 28 cities in India, Blinkit ensures the cities see order deliveries within 10 minutes of placing it online. This change in services received flak from people as they thought Blinkit exploited their delivery guys to fulfill their promise to the masses. Albinder Dhindsa clarified how Blinkit planned the whole delivery task within 10 minutes. Blinkit has its partner stores situated within 2 km of its customers. It also has over 60 partners in Delhi and 3- partner stores in Gurgaon. In contrast, it has an adequate number of partner stores in other cities like Mumbai, Kolkata, Bengaluru, etc. These stores are a crucial part of their business and help them deliver groceries and other essential items to their customers. These partner stores are densely equipped and located, ensuring that Blinkit can swiftly deliver 90% of the received orders within 15 minutes. Moreover, Blinkit boasts efficient in-store planning and management coupled with advanced technologies conducive to packing the received orders within 3 minutes of being placed. People's concern was over delivery guys' safety. Blinkit has replied by saying that the delivery guys are not incentivized to be quick and deliver by jumping the lights. Also, Blinkit reported no incidents of their delivery guys, cementing that drivers do not get pushed beyond their limits. Albinder Dhindsa shed light on the rebranding and said the 10-minute delivery is not a desire. Still, a need as life will only get more fast-paced and hectic, thus, creating the demand for fast on-demand grocery services globally.
Business Model of Blinkit-Supermarket in India
Before reading about Blinkit's new business model, let us know what its main components are:
The main elements of Blinkit's new business model
Blinkit has now decided to take procurement and storage responsibilities into its hands to combat the unreliable service from the local retailers. This move has led to Blinkit delivering items to their customers at a more consistent rate. So now, Blinkit procures products from numerous brands and local businesses and stores them in its inventories. Besides it, Blinkit also has private label brands and even features regional brands with reasonable prices for its new shoppers. Blinkit has incorporated proper QR Code tracking for goods. It monitors every aspect of the goods, from their count to their expiration date.
The change in Blinkit's business model has led to a change in its target audience. Now Blinkit focuses on the middle class and the lower-middle-class segment of the population. This change in the model has seen a change in Blinkit's demographic; there is more involvement from women. However, women's amount of cash on delivery orders is more than their counterparts, showing that they are still hesitant about online delivery services.
Delivery personnel holds immense importance in Blinkit's business model as delivery guys accomplish the task of delivering orders within 10 minutes. However, the delivery process for Blinkit employees has seen a bit of alteration with the new business model.
Blinkit works on a marketplace business model. We can refer to it as the Hyper-Local on-demand logistics system. This new Blinkit business model aims to curb the need for people to commute to local shops and make a purchase. It seeks to promote orders reaching their homes without even stepping out. Blinkit does not own warehouses but has partnered with local grocery shops in the city and sends its delivery guys to collect the articles ordered by the customers from these stores. Blinkit accepts orders from their Blinkit mobile app or their website. Local grocery shops benefit from this tie-up with Blinkit as they get more orders and earnings. Also, Blinkit gains an additional advantage as it asks for some commission on these orders. Here we list some significant insights into the inventory-based Blinkit business model:
Key Partners of Blinkit
1.Local merchants and brands
Key resources of Blinkit
1.Intellectual properties and technologies
2.Online Sales and Delivery Platforms
3.IT and Communication Infrastructure
5.A network of local merchants/ vendors
Key activities of Blinkit
4.Technology platform maintenance
Customer Segments of Blinkit
Value Propositions of Blinkit
1.To act as a bridge between customers and local merchants.
2.To give a more efficient and convenient way for grocery
3.shopping to customers.
4.To let people place orders through their mobile app or website.
5.It enables customers to select from a wide variety of goods and categories.
6.Make an m-Commerce marketplace.
7.Providing merchants and vendors with technological support.
Blinkit Cost Infrastructure
1.Marketing and Advertising.
2.Procurement of merchants and services.
3.Technology and operations.
4.Platforms and apps.
5.An in-house fleet of delivery vehicles.
1.Convenience and efficiency
2.Ease of use and accessibility
3.Extensive domestic reach
4.Online grocery shopping and delivery service
1.Word of mouth
Blinkit Revenue Streams
1.Commission revenue model
Revenue Model of Blinkit- Supermarket in India (How Blinkit makes money)
The new business model has immensely helped Blinkit provide customers with excellent delivery service to end-users. Blinkit has achieved excellence by aptly using technology, having partners, suppliers, alliance partners, etc., and offers thousands of items such as bakery products, meats, and flower delivery. The revenue model of Blinkit is similar to the commission-based revenue model. It has partnered with the local shop owners and merchants for grocery and daily needs goods in the local areas. Blinkit stores its items at its warehouse and employs its infrastructure to deliver goods to end-users. The allied stores are charged eight to 15% on every order made via the website. Also, Blinkit has invested capital in its original labels. This move ensures its active participation in the online ordering and delivery industry. Its private brand accounts for approximately 20% of the total revenue.
Blinkit, previously called Grofers, charges a commission from the goods for its promotion.
Transaction and commission fees
Blinkit enables merchants to sell their items on its marketplace platform and charges specific fees from the sellers like transaction and commission fees.
Why does your business need a business app like Blinkit?
It is lucrative to own an app like Blinkit for the following reasons.
1.An app like Blinkit puts your business ahead of the curve. You can easily find a place in the already existing platforms.
2.Today, the rising popularity of online delivery services means one thing that people are inclining toward using online platforms for grocery shopping. It signifies it is crucial to invest in apps like Blinkit to expand and popularize your business.
3.Owning an app like Blinkit means more exposure for your business. Also, companies can generate more revenue by providing marketing and exclusive deals to various merchants and by reaching out to their customer base.
Blinkit is an app that helps its company to accept people's orders and deliver them on time. Blinkit (formerly known as Grofers) continues to thrive because of its business model that they keep modifying with time. Blinkit's app lets you generate more revenue by exposing your business to many people. Today, everyone likes to shop online. Remember, not just any app but a cleverly and diligently developed app helps gain the desired traction for your business and solidifies your position in the marketplace. Therefore it is crucial to get your apps developed by professionals. If you want an app like Blinkit's app, contact AppsRhino today. We have the experience of creating such on-demand apps and have always managed to live up to our client's expectations.