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Tag: delivery app

  • Zomato to acquire Blinkit, board approves the deal for Rs 4,447 crore

    Zomato to acquire Blinkit, board approves the deal for Rs 4,447 crore

    Mumbai: The board of online food delivery firm Zomato has approved the purchase of quick commerce company Blinkit, which was earlier known as Grofers. This deal has been done for Rs 4,447.48 crore.

    In the information sent to the stock market, Zomato said that this deal will be done under the exchange of shares. The board of directors of the company in a meeting held on Friday approved the acquisition of 33,018 shares from the shareholders of Blinkit Commerce at a price of Rs 13.45 lakh per equity share.  

    After the acquisition by Zomato, the Blinkit team and CEO Albinder Dhindsa will continue to run the company as an independent entity and app.

    Zomato CEO Deepinder Goyal said, “We will explore ways in which Blinkit can benefit from Zomato’s large customer base (and vice versa in the long term). Post the deal closure, we are going to start experimenting with various ideas that we have and see which all bear fruit, including having the Blinkit tab on the Zomato app. As they say, experiment a lot and keep what works. This remains our guiding motto.”

    The quick commerce segment in India is estimated to grow to $5 billion over the next three years, which is a 16x jump from the current size of $0.3 billion. Thus, the deal can be a game changer for quick commerce space!  

    Let’s have a look at what, according to the industry experts, works in the favour after this deal and what works against!  

    What works in favour?

    Experts believe that the deal will lead to better utilisation of the delivery fleet for Zomato and also propel multiple orders per transit, which is a global norm for driving efficiency and bringing the delivery costs down. With this, the valuations of Zomato may inch up backed by this, as one can provide a separate valuation to this segment for now, given its strong growth prospects.

    It may also help Zomato to be better placed versus peers who are only into Q commerce, as they have a ready delivery fleet and will also help them compete with players like Swiggy who have made a very serious foray into this segment via Instamart.

    What works against?

    AOV (average order value) for this segment may be extremely low, which in turn will limit margins and capability to charge a higher delivery fee as delivery charge is linked to AOV.

    At the same time, AOV in this segment is low as this segment caters to buyers who would want products on an urgent basis; a customer may order 5-10 per cent of their monthly grocery requirements via this segment.

    India as a market is still predominantly driven by local Kiraana outlets (general grocery stores), within the vicinity, which would generally drive more than 90 per cent of grocery requirements.

    Moreover, industry experts think that Zomato will need to offer something very different in terms of user experience for Blinkit in order to compete with peers and scale up in this business segment. Further, this business model may not have a big potential in the smaller markets such as tier 2 and 3, as the demand for gourmet food is much lesser vs metros.

    Meanwhile, the closing of the transaction is expected to happen in early August. The transaction is subject to shareholders’ and stock exchange approval.

  • Sara Ali Khan is taken by surprise in Flipkart Shopsy’s new TVC

    Sara Ali Khan is taken by surprise in Flipkart Shopsy’s new TVC

    Mumbai: Flipkart’s social commerce platform Shopsy has rolled out its latest campaign called ‘It happens only on Shopsy’ with Bollywood actor Sara Ali Khan.

    The campaign highlights the brand’s value proposition as a hyper value platform with unbelievably low prices depicted through its tagline ‘Shopsy Pe Prices Aise Lage Free Jaise.’ 

    Created by Tilt Brand Solutions, the campaign features two ad films that are based on the reality of the current market where customers are so accustomed to high prices that they are taken by surprise when they receive high value products at incredibly low prices. “The campaign aims to reach the masses specifically in tier 2 and beyond cities across the country,” said the brand in a statement.

    The two specially curated ad films are aligned keeping in mind Shopsy’s key value propositions – affordability and convenience. In the first one, Sara encounters with a delivery person who refuses to accept extra money for an item worth Rs five. She is awestruck by the price and her excitement soon turns into a dilemma as she cannot fathom the item being priced so low.

    In the second film, a woman, played by Ayesha Raza Mishra, is seen standing in the queue, when a girl, enacted by Sara, approaches towards her and requests the woman to hold her bag for a moment. It then suddenly turns into a conversation when the woman compliments the bag after which the girl offers to give her bag to the woman. The girl immediately empties her bag and gives it to the woman educating her about the unique offers and wide range of choices available on Shopsy.

    “Our priority with Shopsy since inception, has been to pay close attention to our customers’ nuanced needs and provide them with best offerings leveraging Flipkart’s established delivery networks, infrastructure and technology,” commented Flipkart SVP of growth and monetisation Prakash Sikaria. “Today’s shoppers prefer an expansive range of offerings that is both easily accessible and value driven. This campaign is yet another step towards establishing Shopsy as a one-stop destination that caters to customers’ various needs while committing to deliver value.”

    Commenting on the launch, Sara Ali Khan said, “I personally love to shop and can relate to the excitement of getting a good value deal. The youth of India are looking for accessible, trustworthy, and simple e-commerce solutions and Shopsy is the ultimate destination for every value shopper.”

    Launched in July 2021, Shopsy aims to make digital commerce accessible across India through a zero-commission marketplace to boost local entrepreneurship. 

  • Zomato co-founder Gaurav Gupta moves on

    Zomato co-founder Gaurav Gupta moves on

    Mumbai: Gaurav Gupta, one of the key executives of food tech platform Zomato has moved on from the company.

    Gupta, who joined Zomato in 2015, was head of supply at the food delivery company. In 2018, he was elevated to the position of chief operating officer and later designated as co-founder in 2019. He had played a crucial role in the company’s landmark initial public offering (IPO).

    “I am taking a new turn in my life and will be starting a new chapter, taking a lot from this defining chapter of my life — the last 6 years at Zomato,” Gupta told executives at Zomato in an email, as per the company’s blog.

    His departure comes just days after Zomato exited its grocery delivery and nutraceutical business. The company had ventured into the nutraceutical business last year with the launch of health and fitness products.

    Zomato CEO Deepinder Goyal confirmed Gupta’s exit on Twitter. “Thank you Gaurav Gupta—the last six years have been amazing and we have come very far. There’s so much of our journey still ahead of us, and I am thankful that we have a great team and leadership to carry us forward,” he wrote.