As part of a strategic move towards increasing competition in the e-commerce space, food delivery giant Zomato is looking to expand its 10-minute delivery service Blinkit by integrating products from diverse categories. Preparations are underway. As reported by Economic Times, the expansion marks Zomato's ambitious efforts to take on established e-commerce giants like Amazon and Flipkart.
Sources said Zomato's blueprint includes strengthening its supply chain infrastructure to directly source products and manage inventory. The expansion into the direct-to-consumer (D2C) space is seen as a critical driver for the company's long-term growth trajectory. ET's report further revealed that Zomato is in ongoing discussions with individual brand owners from various sectors to strengthen its product portfolio.
In pursuing a robust D2C model, Zomato aims to orchestrate product flows similar to established markets without assuming direct ownership of inventory. Notably, Zomato remained mum when contacted by ET regarding this development.
Additionally, sources revealed that Zomato made an unsuccessful attempt to acquire and merge with e-commerce facilitation company Shiprocket, which is deeply rooted in the D2C ecosystem.
Blinkit, Zomato's quick delivery service, witnessed a staggering doubling of total order value to Rs 3,542 crore in Q3 FY24, registering a 103% YoY jump.
This expansion drive comes amid positive financial conditions for Zomato, with the company reporting a net profit of Rs 138 crore in the October-December period. Revenue for the same period surged 69% year-on-year to Rs 3,288 crore for his Zomato, demonstrating his Zomato's resilience in a tough economic environment.
Zomato CEO Deepinder Goyal foresees Blinkit's pivotal role in delivering shareholder value and highlighted that the company could dominate its core business in the next 10 years. . Goyal's bullish stance underscores Zomato's strategic focus on Blinkit as the cornerstone of its future success. Zomato's foray into e-commerce promises to reshape the competitive landscape in the coming years as Blinkit looks to grow further.
Also read: Zomato denies Shiprocket acquisition rumors
