In a strategic move set to intensify competition in the e-commerce landscape, food delivery giant Zomato is gearing up to broaden its 10-minute delivery service, Blinkit, by integrating products from diverse categories. As reported by the Economic Times, this expansion marks Zomato's ambitious bid to rival established e-commerce behemoths like Amazon and Flipkart.
Sources familiar with the matter revealed Zomato's blueprint involves bolstering its supply chain infrastructure to directly procure products and manage inventory. The foray into the direct-to-consumer (D2C) domain is envisaged as a pivotal driver for the company's long-term growth trajectory. The ET report further disclosed Zomato's ongoing discussions with individual brand owners across various sectors to fortify its product portfolio.
In its pursuit of a robust D2C model, Zomato aims to orchestrate the flow of products akin to established marketplaces, albeit without assuming direct ownership of inventory. Notably, Zomato remained tight-lipped regarding queries from ET regarding this development.
Furthermore, sources disclosed Zomato's unsuccessful attempts at acquiring and merging with e-commerce facilitator Shiprocket, an entity deeply entrenched in the D2C ecosystem.
Blinkit, Zomato's rapid delivery service, witnessed a staggering doubling of its gross order value to ₹3,542 crore in Q3FY24, marking a 103% year-on-year surge from the preceding year.
This expansion drive comes amidst a favorable financial backdrop for Zomato, with the company reporting a net profit of ₹138 crore for the October-December period. Revenue for the same period surged by 69% year-on-year to ₹3,288 crore, showcasing Zomato's resilience in a challenging economic environment.
Zomato CEO Deepinder Goyal, foreseeing Blinkit's pivotal role in delivering shareholder value, emphasized its potential dominance over the core business in the next decade. Goyal's bullish stance underscores Zomato's strategic pivot towards Blinkit as a cornerstone of its future success. With Blinkit poised for further growth, Zomato's foray into e-commerce promises to reshape the competitive landscape in the years ahead.
Also Watch: Zomato dismisses rumors of acquiring Shiprocket