Zomato CEO Deepinder Goyal stated in a shareholder note on Friday (May 19) that his departure from the Urban Company board was the right move, as Zomato intends to enter the at-home services market through its quick commerce division, Blinkit.
“Since I was on the board of Urban Company, I thought it was the right thing for me to step away given we were exploring this space. If at all we end up competing with Urban Company at a large scale, we know we are up against a formidable team and a very high-quality business,” said Goyal.
Goyal’s appointment to the board of the Accel-backed startup took place on March 15 of the previous year, but he subsequently resigned from his position on February 15 of this year.
Blinkit CEO Albinder Dhindsa clarified that while the company was exploring at-home delivery services, including options like electricians and plumbers, no major decisions had been reached at their end thus far.
“At Zomato, we run multiple small experiments to find ways in which local economies can benefit from technology, which makes products and services more accessible for customers. Home services is one such experiment where we are exploring whether we can make our neighbourhood services like electricians, plumbers, etc. more accessible to customers,” said Dhindsa, adding, “At this point, this is not a big decision at our end. We will keep you updated on the progress here, if any.”
In March of this year, Blinkit, a quick commerce startup, was reported to be exploring the possibility of offering handyman services in the at-home services segment.
Blinkit reportedly intends to expand its platform by offering a comprehensive range of handyman services. These services will cover plumbing, AC repair, and assistance in finding electricians. To facilitate the launch of this hyperlocal services platform, Blinkit has already established a specialized team.
Blinkit is not alone in its pursuit of the at-home services segment, as it competes with Urban Company. In recent media reports, it was revealed that Flipkart had expressed interest in entering the same segment. Flipkart’s expansion plans included offering additional services beyond AC cleaning and repair.
Furthermore, Mygate, a security management startup, independently launched its own service in the at-home services segment. However, following a co-led funding round of INR 100 Cr by Urban Company and Acko, Mygate began incorporating Urban Company’s offerings into its own app.
On Friday, Zomato released its quarterly results for the period ending on March 31, 2023. The listed foodtech company reported a 48% year-on-year decrease in net loss, amounting to INR 187.6 Cr during Q4 FY23. Moreover, Zomato experienced a significant 70% year-on-year increase in operating revenue, reaching INR 2,056 Cr.