Blinkit is a super-fast delivery app in India that has become a big hit in the eCommerce market. This delivery business started in 2013 under the name Grofers until it changed in 2021. Zomato acquired it in 2022.
Blinkit & Instamart are currently in direct competition, with Instamart being owned by Swiggy, a rival of Zomato. However, emerging delivery companies like Zepto, Soonicorn & Dunzo supported by Reliance are making waves in the Indian market and could soon go global. But for the moment, all eyes are on Blinkit & Instamart.
Statistics about Instant delivery applications:
- In 2020, the revenue was around $1.175 billion. But by 2021, it shot up to $4.7 billion in just a year.
- In 2022, it was worth $585 billion.
- Expected to reach $2.3 trillion by the year 2030.
- Blinkit, DoorDash, Deliveroo, Getir, GoPuff, Instacart, Instamart & Zepto rank among the leading rapid delivery apps.
In this blog post, we’ll closely examine Blinkit and delve into its business model. We’ll gain insights into building a delivery enterprise similar to Blinkit.
Table of Contents
What is Blinkit?
Before 2021, Blinkit was recognized as Grofers, an Indian rapid delivery service. Since its inception, it has been active across India catering to 23 prominent cities including Bengaluru, Chandigarh, Delhi, Gurugram, Hyderabad, Jaipur, Kolkata, Mumbai, Pune & Vadodara.
In addition to groceries, the service offers a wide range of over 7000 items. This includes fruits, vegetables, household supplies, personal care products & more.
Initially known as Grofers, the on-demand delivery service began its operations in Delhi NCR & later expanded its reach to cover multiple regions across the country. Currently, it operates in more than 20 major cities in the world’s most populous country.
To promote online deliveries, Grofers rebranded itself as Blinkit & adopted an inventory-based business model while staying committed to its original mission.
Zomato’s Acquisition of Blinkit
Zomato, a prominent Indian food delivery firm, announced its acquisition of Blinkit through an all-stock transaction on June 24th, 2022. It was completed on August 10th, 2022 costing an impressive $568 million.
Customers have the option to buy items either through the Blinkit website or by using the web app on their smartphones or tablets. They can also choose to place an order via Blinkit using the Zomato app.
Blinkit Business Model
Unlike traditional business models, the Blinkit business model comes with a unique twist. The initial business model didn’t yield strong results. Customers can choose to purchase items by visiting the Blinkit website or utilizing the web app on their smartphones or tablets. Let’s learn about each of them.
The Original Business Model
Originally named Grofers, Blinkit started as a delivery service focused on providing everyday essential items. It was a delivery service within the area that aimed to enhance convenience by linking local stores directly with customers. Blinkit’s business model revolves around three crucial components:
1. Buyers
The company started providing a convenient choice for customers who’d rather not go to a physical marketplace to purchase everyday items. This includes people of all ages & backgrounds such as working professionals, senior citizens, individuals facing health challenges and students.
2. Local Sellers
Blinkit collaborates with neighborhood vendors especially those with limited or no marketing resources. The on-demand delivery service allows them to expand their reach and make doorstep deliveries without requiring dedicated delivery staff.
The nearby seller gives Blinkit a commission fee between 8 to 15% of the product’s value for the work they do.
3. The Delivery Team
The immediate delivery service organizes covered areas into neighborhoods where each neighborhood has its own designated delivery agents & identified vendors.
These delivery teams make sure that Blinkit’s partnered stores can quickly deliver everyday items to customers.
Blinkit App Development Cost
The expense of developing an app similar to Blinkit can fluctuate significantly based on various factors. However, here is a breakdown of the key factors to consider:
- Basic App: The cost ranges from $5,000 to $10,000 and covers vital functionalities such as user registration, product browsing, payment gateway integration, order tracking & delivery management.
- Advanced App: Between $15,000 and $30,000, this package includes enhancements such as live order tracking, in-app messaging, tailored suggestions, special promotions and loyalty initiatives.
- Sophisticated App: Between $40,000 and upwards of $80,000, this package includes advanced features such as hyperlocal delivery optimization, AI-generated product recommendations & voice-activated search capabilities.
The Switch to an Inventory-based Business Model
Why did Blinkit Transform into an Inventory-centric Business Model?
- The original Blinkit business model didn’t gain as much popularity.
- A flood of rivals is joining the online grocery delivery market.
Blinkit’s initial business model, formerly known as Grofers, didn’t achieve the expected level of popularity. It achieved success but fell short of expectations. As a result, it changed its business model to focus on inventory.
Surprisingly, the two business models share some similarities. The inventory-based model is an expansion of the initial model that incorporates an inventory system, hence its name.
Instead of the initial plan of delivering ordered items directly from the store, the items undergo quality inspection after being transferred to a nearby warehouse. The products are packed and shipped to the customer only once they pass the quality checks successfully.
How Does Blinkit Function and Generate Revenue?
Right now, Blinkit operates in more than 20 cities. In these cities, Blinkit has store partners approximately every 2 kilometers.
The speedy online delivery service offers a vast selection of 7,000 products for customers to choose from & promises a 10-minute delivery time. However, in certain situations such as rainy weather or peak traffic hours, there might be slight delays. Nevertheless, it remains an instant service.
It states that it can get an order ready to ship in under two minutes to ensure fast delivery of purchased items. Blinkit has dedicated significant effort to upgrading its technology & improving the efficiency of its in-store planning. This initiative has resulted in fast packaging and delivery times.
The path a product takes from a warehouse to a consumer’s doorstep is long and connected. It includes suppliers, vendors, logistics, delivery partners & additional participants. This is where Blinkit steps in, earning money by offering services needed by small vendors.
When customers order through Blinkit, either on its mobile app or website, they’re shown a variety of brands & stores to choose from. The immediate delivery service collects fees ranging from 8% to 15% from vendors for the services they provide.
To expand its sources of income, the online grocery delivery company has been putting money into both new & well-established brands.
Creating an App Similar to Blinkit: A Step-by-Step Guide
Creating an app similar to Blinkit requires utilizing the most advanced technologies in mobile app development. Here are the detailed steps to create an app similar to Blinkit:
1. Determine Your USP
Determining the unique benefit a business offers is crucial for the success of any business concept. The unique selling point of an instant delivery company revolves around speedy delivery, though additional benefits can also be incorporated. This could include high-quality packaging, 24/7 availability & similar features.
2. Choose the Item You Want to Deliver
Remember that although Blinkit expanded its product range in 2023, it initially began as a food delivery platform in 2013. As a result, it’s advisable to start with small actions.
Take thoughtful consideration of what you need to start with. With time, your catalog has the potential to expand. So, take your time and ensure you thoroughly research before reaching a decision.
3. Choosing the Technology Stack
Selecting a technology stack depends on the platforms you’re targeting and the type of application you intend to develop.
When developing a mobile app, you’ll need a range of tools that span the technology stack, covering front-end design, back-end functionality, database management, security measures and more.
There are different programming languages, frameworks for mobile app development & tools available to help your development team create a mobile app that fits perfectly with your online food delivery business.
Ensure that you focus on your mobile app development requirements to select the optimal choice from the array of available mobile app development options.
4. Develop a Mobile App
In today’s world, the mobile platform has become the main space for doing business. A while back, it exceeded traffic from desktops. Currently, mobile commerce stands out as the leading type of electronic commerce.
Regardless of your industry, it’s essential to ensure accessibility and proper functionality on mobile devices. The best method is to develop a mobile app or a web application.
You can choose to do it by yourself or get help from a dedicated development team for the project. You need to add:
- A dashboard crafted to aid business owners in streamlining their operational management.
- A platform where customers can submit their orders.
- A dashboard or mobile app for merchants & vendors enabling them to oversee their products/services and boost their presence on the platform.
After creating the mobile app, it’s crucial to perform comprehensive testing to reduce the chances of encountering bugs.
5. Introduce Your Mobile Application
Once your instant delivery app development is completed, it’s time for its launch. Make sure to minimize errors & include the necessary features before launching the app.
To make sure your app doesn’t end up without a market, start by creating a minimum viable product (MVP). It will assist in introducing your product without investing in unnecessary features.
You could think about making a proof-of-concept document to confirm that your project is technically feasible.
Benefits of Developing Your Custom On-Demand Grocery App with HashStudioz
- Scalable & Clean Design: Our Blinkit clone software utilizes cutting-edge container technology, follows clean coding practices, utilizes a microservice architecture & seamlessly integrates safety and security features.
- Your Brand Imagery: We can create software like Blinkit and smoothly integrate your brand’s colors, ensuring uniformity throughout.
- Server Setup: We set up the Blinkit clone dark store software on the client’s server to ensure a seamless and effortless transition.
- Advanced Technological Structure: A Q-commerce app needs an advanced infrastructure capable of efficiently handling and expanding to accommodate a large number of orders. We ensure that our grocery delivery app uses CSV and geo-intelligence to provide the fastest service possible. Our version of Blinkit for delivering groceries on demand can be customized to fit various kinds of dark store purposes. We can customize our app to suit any unique delivery business concept you envision.
- Payment Gateway: Our grocery delivery applications provide smooth transactions by linking up with leading payment gateways such as Stripe, Razorpay & Kushki.
- Security: Our on-demand grocery delivery app is robust & scalable to meet increasing demands and prioritizes security. We use SSL-powered APIs, Keychain, JWT and a reverse proxy setup to ensure that security covers everything from the app to each API.
- IP Rights Registered: We offer your business the intellectual property rights to personalized instant delivery software. Your business will have exclusive ownership of the product giving you full discretion over any changes or use of the mobile app.
Get in touch with us today to launch your own Blinkit-like clone into the market right away!
Conclusion
Blinkit has achieved tremendous success within the fast-paced delivery market. Zomato’s acquisition is proof of its success. The competition in the Indian grocery market isn’t slowing down anytime soon. Statistics suggest it’s set to expand further in the upcoming years.
No matter where you are, you can start an instant delivery business like Blinkit or other quick-commerce ventures.
You have the option to engage a custom Android app development company such as HashStudioz to assist in creating a customized mobile application and instantly launch it to initiate business operations.
