How Blinkit’s Speed is Disrupting Flipkart

In the ever-evolving industry and tough e-commerce competition, there is a race to be the best. Everyone is putting customer experiences at the top. Speed and convenience are helping them win more customers and their trust.

Quick commerce apps like Blinkit and Instamart set high standards. These market players are disrupting the market and giving tough competition to the e-commerce giants Amazon and Flipkart.

Among all players, Zomato's Blinkit is leading the quick commerce market. Blinkit promises to deliver within 10–15 minutes. The app offers a range of products, from electronics to personal care items.

This article will discuss how Blinkit speed and convenience are disrupting Flipkart. It also discusses Blinkit’s impact on consumer behaviour.

Rise of Quick Commerce

COVID has dramatically changed our lives and buying behaviours. Lockdown periods have left consumers with the option to shop online. Whether it is for personal care products or grocery needs, people prefer online apps that deliver to their doorstep.

Once a compulsion, Indians have adopted it as a lifestyle and love this convenience. They are now hooked on these 10-minute delivery apps.

Key Features of Quick Commerce

Quick commerce businesses have a unique setup. It involves mother hubs, distribution centres, and last-mile delivery stores known as dark stores. These dark stores are small warehouses located close to customers, stocking a range of essential items.

When you place an order, these stores fill it quickly, in just a few minutes. It requires coordination between the stores, distribution centres, and delivery teams.

Quick commerce companies use data to predict demand and plan their warehouse and delivery staff accordingly. Here are its 6 main features:

• Quick commerce means quick delivery of products. The primary goal of the quick commerce business model is to deliver within minutes. It is a solution for consumers with busy schedules and does not demand extra costs.

• These quick-commerce businesses are one-stop shopping destinations. Customers can find a wide range of products in just one place.

• Quick commerce is also a successful business model, as it offers maximum convenience to customers. Nowadays, it is all about making your customers' lives easy. You can shop anytime and from anywhere. You can order groceries while you are in the office.

• It also improves customer shopping experience by giving customers the power to track their orders. Real-time tracking reduces the anxiety that comes with the stress of missing an order. Customers can easily focus on other tasks as per the delivery time mentioned on the apps.

• 24*7 delivery is also a part of convenience. If you are out of ingredients at midnight, pick up your phone and order. You will get it delivered within minutes.

• Quick Commerce works on the hyperlocal strategy. It reduces delivery times by partnering with local warehouses and dark stores. This hyperlocal focus improves delivery speed and supports local businesses.

Blinkit Business Model

According to a February report from Indian investment bank JM Financial, Blinkit will lead with a 46% market share^[1] in 2023. It has an annualised gross merchandise value (GMV) of 142 billion rupees.

Initially known as Grofers, Blinkit was struggling before the acquisition. Its founders, Albinder Dhindsa, Saurabh Kumar, and Rahul Rai, launched Grofers as a grocery delivery app.

They later rebranded it as Blinkit, focusing on quick commerce. They started focusing on fast delivery and expanding the range of products on the platform.

On Blinkit, you can buy groceries, home appliances, beauty items, toys, books, and health and wellness products. You can also get printer services and buy tech gadgets.

Quick commerce is all about convenience and speed. Blinkit has been doing it like a pro. Here are the important components of Blinkit's business revenue model:

• Commission-Based Revenue Model

Blinkit's primary revenue stream is the commission it gets on the goods. It collaborates with local supermarkets and wholesalers, and the marketplace charges them a commission. This commission is typically a percentage of the total order value.

• Delivery Charges

Each order placed on Blinkit incurs a delivery fee. Different Blinkit stores have different delivery charges. It typically ranges from INR 100-200. However, the quick commerce business reduces or waives the delivery charges during special promotions and discounts.

• Subscription Fees

Blinkit offers a subscription service called Blinkit Prime. Under this membership program, customers enjoy several exclusive benefits.

For example, it offers free delivery for orders above INR 4000. Blinkit Prime allows consumers to access exclusive discounts on selected products and early access to new releases.

• Promotion and Advertising

Blinkit offers advertising space on its website, app, and even delivery trucks. Being a well-known brand, many businesses compete to get an advertising space with it.

• Partnerships

Blinkit partners with other businesses like Amazon Prime to offer additional discounts and promotions to its customers. These partnerships keep the customers involved and happy.

Flipkart Fast Delivery Option vs. Blinkit Speed and Convenience: e-Commerce Competition

Amid tight e-commerce competition, every player is making changes in how they operate. Speedy delivery has been a priority for businesses as well as customers.

Amazon and Flipkart offer fast delivery. Flipkart fast delivery option is only limited to 1 hour, 90 minutes, and a day. Also, these features are accessible with prime subscriptions.

However, Blinkit is different. The app says grocery delivery in 10 minutes. You do not have to buy a subscription to get your products delivered at this lightning speed.

These products are delivered fast and without any extra cost. In fact, customers get discounts on the overall bill. This convenience and speed encourage customers to stick to the app.

Goldman Sachs predicts that India's quick commerce market will grow. This market is witnessing growth due to its large unorganised grocery sector, dense urban population, and favourable delivery cost-to-order ratios. Blinkit's ultra-fast delivery model challenges Flipkart.

Seeing its growth, scope, and competition, Zomato has announced to invest ₹300 crore^[2] in its quick commerce subsidiary, Blinkit. Under this aggressive expansion investment, Blinkit plans to double its store count. It will add 474 new dock stores in the coming year.

How Does Blinkit’s Fast Delivery Model Impact Consumer Behaviour?

Quick commerce brand Blinkit has completely changed how consumers shop. Its ultra-fast delivery features have set high standards, and customers expect fast delivery. It leads to instant fulfilment of needs and eliminates the need to visit physical stores.

Blinkit is also increasing impulse buying. When consumers see products available on the platform, they often tend to purchase more than they want to.

It is changing how urban households get their groceries and everyday items. They love the Blinkit business model, which takes care of their busy schedules and eases their lives by delivering everything at home with lightning speed.

Summing Up

The rise of quick commerce has disrupted the e-commerce landscape. With lightning-fast delivery times and a variety of products, Blinkit is redefining customer expectations. Due to limitations, Flipkart's fast delivery option is falling behind in quick commerce competition.

This trend will likely continue due to India's growing urban population and the increasing demand for convenience. As quick commerce giants like Blinkit expand their reach and improve operations, the challenges for other players like Flipkart are increasing.

GrowthJockey remains at the forefront of e-commerce trends. We believe that quick commerce has the potential to become a dominant force in the online shopping world.

By providing valuable insights and data-driven strategies, GrowthJockey helps businesses achieve their quick commerce goals.

Our team excels in providing digital solutions that help businesses stay ahead of such tight e-commerce competition. From AI and machine learning to digital advertising, GrowthJockey has been helping brands sustain, grow, and succeed amid this quick commerce era.

FAQs

1. What are dark stores?

Dark stores are retail outlets or large distribution centres without storefronts. They only fulfil online orders and use quick commerce platforms like Blinkit. These stores are within cities for rapid order fulfilment and speedy delivery of goods.

2. Who is the biggest quick commerce player in India?

Currently, Zomato-owned Blinkit is leading the quick commerce market in India. It leads with a 46% market share in 2023 and an annualised GMV of 142 billion rupees.

3. How can GrowthJockey help businesses navigate quick commerce trends?

GrowthJockey is a leading technology and marketing solution provider with years of expertise. We can help you with tailored technology solutions, marketing expertise, better branding, and data-driven insights.

1. 46% market share - Link ↑
2. ₹300 crore - Link ↑