One of the top firms offering grocery delivery services in the nation, Blinkit, has gained popularity extremely quickly. How did they pull it off? through tenacity, tenacity, and a dedication to customer satisfaction. Blinkit was created by Grofers, one of the most prominent eCommerce businesses in India.
When Grofers decided to stop offering grocery delivery, a group of employees made the decision to launch their own company, and Blinkit was created!
India’s top online grocery delivery service is Blinkit (previously Grofers). The business is headquartered in Gurgaon, Haryana, and was founded in 2013. Let’s examine Blinkit’s success in greater detail.
In December 2013, Saurabh Kumar and Albinder Dhindsa created Blinkit, an online retailer that offers home delivery of products. The retail industry has undergone a major transformation because to Gurugram-based Blinkit.
Briefly stated, Blinkit is an online marketplace that streamlines everyday shopping. Customers can take advantage of speedy delivery while shopping at their neighborhood’s favourite stores. With only a few touches, customers may purchase groceries, fruits and vegetables, bakery goods, flowers, meats, pet care products, infant care products, and cosmetics.
One of the most well-liked platforms for grocery delivery in India is Blinkit. It has so far gotten more than $1 billion in capital from several investors. In 2013, Albinder Dhindsa and Saurabh Kumar launched the business. One of the few Unicrons in India is Blinkit.
An industry-leading platform for grocery delivery was established in India in 2013 and was originally known as Grofers. On December 13, 2021, the business underwent a makeover and changed its name from Grofers to Blinkit. The third-largest provider of grocery delivery services in India is now Blinkit.
It holds about 14% of the overall market share, third to BigBasket and Amazon. The startup currently serves customers within a 10-minute delivery window in over 28 Indian cities. So let’s read this article and learn about the success of this fantastic company.
Blinkit runs on a market-based business model. It lacks any private warehouses or markets. Instead, the business works with numerous neighbourhood shops and merchants in the city, and the delivery men visit those locations to pick up the ordered goods. The delivery boys then deliver the orders to the customers.
Blinkit accepts orders through its app or website, and because to its tie-ups with nearby food stores, they can reach customers within 10 minutes and deliver orders. Because they charge a commission on each order, Blinkit makes money from these orders.
With its new branding, Blinkit now promises users delivery within 10 minutes. Orders are guaranteed to be delivered within 10 minutes of being placed online by Blinkit, which provides service to 28 cities in India.
People were upset about this change in services because they thought Blinkit was breaking its pledge to the public by using its delivery staff. Albinder Dhindsa described how Blinkit quickly planned the delivery task. Within two kilometres of its clients, Blinkit has partner stores. Additionally, it has three partners in Gurgaon and over 60 partners in Delhi.
A commission-based business model is used by Blinkit. It offers grocery delivery throughout the neighbourhood through partnerships with a range of retailers and small business owners. Blinkit assesses a fee for certain purchases.
On the other hand, it has an adequate number of partner stores in other cities like Mumbai, Kolkata, Bengaluru, and so on. Because they assist them in delivering groceries and other supplies to their consumers, these stores are a crucial component of their company. Because of their well-equippedness and advantageous locations, these partner stores enable Blinkit to deliver 90% of orders within 15 minutes.
Blinkit also promises effective in-store planning and management strategies and cutting-edge technologies that enable orders to be packed in just three minutes after being placed. Concerns were raised concerning the delivery men’s security. In response, Blinkit said that there is no incentive for delivery drivers to deliver quickly or by running red lights.
Additionally, Blinkit stated that none of its delivery drivers had been involved in any incidents, demonstrating that they are not overworked. In his discussion of the rebranding, Albinder Dhindsa said that 10-minute delivery was not the objective. Still, there is a desire for quick on-demand grocery services as people’s lives get busier and more frantic.
The Design System
At Blinkit (previously Grofers), things happen quicker than the speed of light. With numerous teams and concurrent development cycles, designers find it challenging to maintain consistency and alignment with our small resource library. They previously placed a lot of reliance on internal UI kits and Sketch libraries that were not consistently updated or supported. Blinkit consequently inherited a significant amount of platform difference and design debt.
They started exploring for a more all-encompassing solution to help them produce meaningful experiences at scale and speed. A system that enables Blinkit to be more adaptable and agile in the design process was required to keep up with the pace of the business. Blinkit aims to achieve this by:
1. Being Cohesive across platforms and consistent:
When Blinkit audited all of its designs, it noted the anomalies and found that most of them were caused by the absence of a consistent design ethos. It calls for an up-to-date design system with reusable parts that lowers friction and enables any designer to swiftly assemble a screen without being concerned about going against our design guidelines.
2. Picking up pace:
Blinkit aims to define all elements, flows, and patterns within its apps and website with the aid of a few reusable components. It will quicken our design and development process while also fostering better internal communication and teamwork.
3. Improving User Experience:
It has been challenging to maintain feature parity across platforms and offer a consistent experience since different designs are out of alignment. Unintentionally increasing users’ cognitive load and level of annoyance was Blinkit’s goal.
The business model used by Blinkit is one of the marketplace. It intends to lessen the requirement for customers to visit nearby establishments to make purchases. There are no warehouses or supermarkets owned by this startup.
It just coordinates with the neighbourhood grocery stores in the city before sending out its delivery staff to pick up the groceries that consumers have ordered from these businesses. They take orders online or through their smartphone app. This tie-up technique helps neighbourhood grocery store owners get more orders because the company charges a fee, and it also enables Grofers to profit from these transactions.
The Revenue Model
When it comes to finance and investors, Blinkit has been very successful. The total amount of funding raised by Grofers to date is about $1 billion. Zomato led the most recent fundraising round for Blinkit on March 11, 2022, contributing $100 million. According to the quick commerce company, the $100 million raise is also the first installment of a $400 million investment round. Additional funds are anticipated to be received within the upcoming week. The titan of food technology instead proposed a $150 million loan.
On August 16, 2021, the online grocery delivery service received certification after collecting $100 million from Indian food delivery giant Zomato. This aided the online grocery delivery business in becoming a unicorn with a valuation of more than $1 billion.
The commission-based income model is comparable to Blinkit’s business strategy. In order to deliver food and other necessities in the nearby towns, Blinkit has partnered with local business owners and merchants. These merchants are charged a commission by Blinkit for these orders. For orders under 700 and under 1000, the charge varies from 8% to 15% and from 12% to 15%, respectively. A shipping fee will also be charged by Blinkit if the order is for less than INR 250.
Currently, Blinkit completes 1.25 lakh orders per day. As of December 13, 2021, Blinkit reported processing 1 million+ orders per week across 12 cities in India. Blinkit envisioned itself as a quick commerce company that provided everything consumers required on a daily basis.
With over 5,000 products accessible for home delivery in as little as 10 minutes, Blinkit is already one of India’s largest e-grocery companies and has experienced substantial development.
Zomato loaned $150 million to Blinkit on March 16. The two had reportedly discussed an all-stock merger agreement at the time, according to TechCrunch. Zomato would thus pay roughly $700 million for the latter.
Blinkit has decreased in size and is experiencing financial difficulty since moving to quick delivery last August. Due to this deal, it no longer qualifies as a unicorn, which calls into doubt the feasibility of such a business model.
Blinkit has benefited immensely from the new business model in its efforts to offer top-notch delivery services to customers. Through the efficient use of technology, the presence of partners, suppliers, and alliance partners, and the availability of thousands of commodities including bakery goods, meats, and flower delivery, Blinkit has reached perfection.
The commission-based income model and the revenue model used by Blinkit are comparable. To provide groceries and daily necessities in the surrounding neighbourhoods, it has forged partnerships with neighbourhood store owners and business owners. Blinkit uses its infrastructure to deliver its goods to customers after storing them in warehouses. There is an eight to fifteen percent fee associated with every order placed on the website. Blinkit has made investments in its unique labels as well.
The company uses the app Blinkit to help with order acceptance and timely delivery. Due to its changing business approach, Blinkit (formerly Grofers) is still successful today. Using the Blinkit app, you may expose your business to a big audience and boost sales. Everyone prefers to shop online these days.
Keep in mind that not just any app, but one that has been skillfully and meticulously designed, can assist in giving your company the momentum it needs and securing its position in the market. Employing experts to create your apps is so essential. If you want a Blinkit-like app, get in touch with AppsRhino right now. Such on-demand apps have been developed by us in the past, and we have consistently met or exceeded client expectations.