Zomato has launched a pilot test of grocery delivery via Blinkit on its main app in Delhi NCR, as the online grocery aggregator aims to “accelerate” the Blinkit delivery platform to profitability within 10 minutes.
Pilot tests are currently being organized in selected circles of Delhi-NCR. After analyzing the responses, it will expand to other cities, according to the company.
Currently, they can order some of the pilot projects for as low as Rs 150 via Blinkit in the main Zomato app, while Zomato is still priced at Rs 49.
Its founder and CEO Deepinder Goyal noted that once the Blinkit acquisition is complete, Zomato will try to leverage Blinkit’s customer base and vice versa.
“The Blinkit application will continue to operate independently. We will also begin integrating the delivery fleet backend, which will improve delivery efficiency over time,” he said in a letter to shareholders.
The technological integration between the two companies will accelerate the pace of progress for both parties.
According to the company, Blinkit’s losses are shrinking every month, from 2.04 billion rupees (about $26 million) in January 2022 to 929 million rupees (about $12 million) in July.
Blinkit has also closed several unprofitable dark stores that have not scaled up, and the team will continue to evaluate the closed stores.
In just six months, the Blinkit business has grown to 20% of Zomato’s GOV for grocery delivery, while operating in less than 15 cities.
“Quick Commerce reduces a wide range of essential expenses, including grocery, fruit and vegetables, beauty and personal care, OTC pharmaceuticals and stationery. As a result, we expect total customer base, average order value and monthly order frequency to be higher than grocery delivery,” the company said.
Blinkit announced last week that it will deliver prints to your door in the blink of an eye.