Online grocery delivery apps boomed as they were considered a necessity by users. These apps are meant for convenience and most people like it that way. In the last few months, the online grocery delivery market has gained very high traction because of a change in attitudes, a tech-savvy generation, and rapid urbanization which demands instant satisfaction from everything.
There are multiple Indian grocery delivery apps but Blinkit has been topping the charts since it was launched because it is a subsidiary of Zomato food delivery app which is quite popular.
Blinkit is a grocery delivery app based in India that operates in various cities across India enabling customers to purchase their groceries online. If the success of Blinkit encourages you and you are planning to hire a grocery app developer and opt for grocery app development, then this article is for you.
Brief Background of Blinkit
Albinder and Saurabh discovered a huge gap in the delivery industry and they both recognized an opportunity. That was the point they started laying the foundation for their startup. They wanted to serve as a one-stop shop for customers’ local delivery needs, they planned to offer on-demand pickup and drop services. Thus Blinkit was founded in 2013 and has become a unicorn company with a $1.01 billion valuation. Blinkit follows a marketplace model, it has no personal stores or warehouses but the company ties up with local stores and delivery partners to fulfill the online orders placed by the customers. Blinkit is one of India’s most used grocery delivery applications and received more than $1 billion in funding from different investors. The store accepts orders via its Android and iOS apps and its website which allows grocery stores to update their menu and delivery providers to pick up the order ASAP.
On June 24, 2022, Blinkit’s acquisition was approved by Deepinder Goyal, the owner of Zomato. It had purchased the online grocery delivery business for $568 million in all-stock terms.
How Does Blinkit Deliver Grocery in 10- Minutes?
In June 2021 Blinkit completely redesigned its delivery operation, guaranteeing delivery within ten minutes after an online order was placed.
Blinkit can deliver food in 10 minutes as one of the company’s partner stores is located within 2 kilometers of the clients, which is a significant advantage. In addition to an acceptable number of partner stores across major cities like Mumbai, Kolkata, Bengaluru, etc., the company has more than 60 partner stores in Delhi and has expanded to over 30 partner stores in Gurgaon.
# Business Model of Blinkit
Blinkit operates within a marketplace business model. The hyper-local on-demand logistics system is another name for it.
The latest Blinkit business model seeks to eliminate the need for people to travel to local stores and buy goods. Instead, they should deliver orders to the customer’s home without stepping out anywhere.
Blinkit does not have any warehouses of its own but partners with neighborhood grocery stores in the town, sending its couriers to these shops so that they can collect the items purchased by customers from there.
Orders can be made through either the Blinkit website or the mobile app. Local grocery retailers profit from this partnership because they receive more orders and make more money.
In addition, Blinkit benefits in another way as it demands a certain rate of commission on such orders.
# Revenue/Profit Model of Blinkit
Before you hire grocery delivery mobile app developers, let us understand the revenue model of a top grocery delivery app like Blinkit.
Due to the new business model that it follows, Blinkit has been able to provide its clients with unique end-user delivery services.
Due to the effective utilization of technology, partnerships with suppliers, distributors, and alliance partners, among other factors such as meat and baked product lines as well as flower deliveries, Blinkit has become quite popular.
One question that is often asked about Blinkit is how it makes its money. This company gets its revenue from numerous channels with some being:
Commission-based Revenue Model
The main source of revenue for Blinkit lies in its commission-based model. As you are already aware, it collaborates with supermarkets in proximity and wholesalers who sell their goods on its marketplace. Blinkit charges a commission for this that is usually deducted from the sale price.
Delivery Charges
The delivery fee applies to every order placed on Blinkit’s platform and ranges between $2 and $3 on average; however, it sometimes happens that Blinkit may offer various deals or discounts that allow its customers to pay less or nothing at all for the shipping expenses.
Subscription Fees
Blinkit Prime is offered as a subscription package by the organization. For orders above INR 4000, Blinkit Prime members enjoy free shipping. Other benefits of Blinkit Prime include discounts on selected items as well as getting new releases earlier than other customers do.
Promotion
Advertising space is available to be purchased on Blinkit’s network. Advertisements can be placed by advertisers on Blinkit’s website, its app, and delivery trucks.
Partnerships
Blinkit forms partnerships with other companies to provide discounts and promotions to its customers. For example, Blinkit customers who spend more than $50 on Amazon get free delivery through a partnership between Blinkit and Amazon Prime.
If this revenue model motivates you, you can also start your grocery app by hiring an experienced grocery app development company.
How Much Does It Cost to Develop an App Similar to Blinkit?
The online grocery delivery market in India is ever growing as these days people prefer ordering products online rather than standing in a long checkout queue. That is the reason, even retail store owners and supermarkets are also implementing modern technology solutions to fulfill the rising needs of customers and survive the competitive market scenario.
Blinkit app can be considered a pioneer in the market, inspiring every entrepreneur to have a similar solution for their conventional business setup. So, the major questions tend to be how much it might cost for a website and app development like Blinkit.
So start with gaining inputs on every detail that needs to be taken care of to design and release your application. Try computing an estimated cost and expenses, revenues, profit, and loss by taking into account all of the project plans, features, modules, etc.
If we consider the parameters that are needed and important while deciding on cost, some of the major points include:
- Project wireframing and prototyping
- Application design and development
- Marketing activities
- Third-party API
- Hosting and server charges
- Maintenance charges
Conclusion
Blinkit has established itself as the quickest grocery delivery service in less than ten minutes. Its rising success graph is making the company one of the major competitors in the market today. This e-commerce platform owes its initial success to a strong Blinkit business model. Aspects such as convenience, affordability, speed, and scalability are all that defines the Blinkit business model that has enabled wider market penetration and easy customer attraction.
A starter like Blinkit can also be launched as an instant delivery service or a quick commerce startup from any place you choose. With the right grocery delivery app development company, you can also enter the market and cater to a wide audience group.
If you want to get a detailed quote, consult an experienced on-demand app development company like Shiv Technolabs. We will assist you in developing a seamless app like Blinkit that connects users, stores, delivery providers and admin.
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