story-banner

Zomato's next frontier: Blinkit's expansion signals quick commerce takeover

author-image

Pranav Balakrishnan

42 reads
author-image

Pranav Balakrishnan

42 reads

Despite posting a record profit in its latest quarterly earnings, Zomato’s core food delivery business wasn’t the star of the show. Instead, quick commerce offering Blinkit stole the limelight, with Zomato planning to double down on the business over the coming year.

May 14, 2024

9 MINS READ

Key Takeaways

  • Blinkit’s aggressive expansion plans for the year ahead come amid increasing competition in quick commerce
  • CEO Albinder Dhindsa, though, says the move has nothing to do with competition and claims Blinkit is the quick commerce leader in Bengaluru and Mumbai
  • Blinkit’s company structure and operations appear to have helped it win meaningful market share from rivals on their turf
  • While analysts raised concerns about the expansion plans impacting key profitability metrics, it is unlikely to shake investor confidence in Zomato and its quick commerce story

Yesterday, foodtech major Zomato published its earnings for the quarter ended March 2024, reporting a fourth consecutive quarter in the green. However, despite Zomato posting a consolidated profit of Rs 175 crore, a 28% increase over the previous quarter, its core business—food delivery—wasn’t the star of the show.

Instead, the limelight was stolen by the Gurugram-headquartered company’s quick commerce subsidiary, Blinkit. Even the main theme picture from the shareholder note of Zomato focused on Blinkit. Blinkit’s prominence in the Zomato story shouldn’t come as a surprise. In late April, a Goldman Sachs report stated that Blinkit’s contribution to Zomato’s market cap was larger than that of its food delivery business. 

For subscribers only

Premium Reads

>>

View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.