Deepinder Goyal, Zomato co-founder and chief executive stated that Blinkit‘s fast delivery doesn’t threaten local kirana stores; instead, it rivals online shopping and ecommerce websites.
Q Commerce Blinkit shares market with Amazon and Flipkart
During a recent event on Saturday, Deepinder said, “Blinkit is not really eating into the kiranas at all. It is not even affecting companies like Dmart. I think we’re more or less eating into the Amazons and the Flipkarts, the ecommerce sector, as well as the modern retail in the larger cities.”
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Notably, Zomato’s quick commerce division, Blinkit, had a strong first quarter of FY25. It more than doubled its revenue to INR 942 crore, compared to INR 384 crore in the same period last year, and also saw 130% growth in the April-June quarter, reaching INR 4,923 crore in gross order value.
He further added, “I think the growth of quick commerce has been a surprise for us as well. We didn’t think it would grow this much.”
According to Blinkit’s quarterly report, the firm is growing without taking market share from small local stores or discount marts like Dmart. Instead, Albinder Dhindsa, chief executive of Blinkit, said that their success is driven by growing demand and a shift away from next-day online shopping and mid-range standalone retail stores in major cities.
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Furthermore, Dhindsa added, “The value-focused items available in these formats are hard to replicate in our business, especially in categories like staples, where price sensitivity is higher and we don’t have the ability to sell open stock-keeping units that brick and mortar can.”
India Q Commerce market expects to grow $22 billion by 2027
With a diverse range of products and rapid sales growth, quick delivery services are evolving into full-fledged online markets. BofA Securities expects the India quick commerce market will boom as it is slated to reach nearly $22 billion by 2027 from $2.8 billion in 2023 – a remarkable growth in just four years. Leading such companies are Zepto, based in Mumbai, and Instamart by Swiggy. Recently, Walmart-owned Flipkart, entered the competition with its quick delivery service, Minutes.
Meanwhile, Blinkit aims to triple its network, aiming for 2,000 delivery hubs, by the end of 2026.
