Blinkit poised to surpass Zomato by 2025: Deepinder Goyal forecasts quick-commerce surge

Zomato co-founder Deepinder Goyal expects the q-comm business Blinkit to eclipse the food-delivery business by 2025. In a conversation with Sanjeev Bikhchandani, co-founder and vice-chairman, Info Edge India, at Startup Mahakumbh Goyal said, “In one year, Blinkit would be bigger than Zomato. So, I don’t know for how long Zomato will have its relevance.”

Blinkit (formerly Grofers) began as a quick-commerce platform offering grocery deliveries within 8-20 minutes. Goyal’s Zomato acquired Blinkit in 2022. Since then the q-comm landscape has quickly evolved, offering not just groceries but a lot more. From home appliances, beauty items, toys, and books to health and wellness products, tech gadgets, and even printout services, Blinkit now caters to diverse needs.

It is this expansion of products and services that Blinkit and its competitors offer that is driving the growth of q-comm and presenting q-comm as an alternative to e-commerce even. According to recent Redseer Strategic Consulting data, the q-commerce segment achieved 77% growth in gross merchandise value (GMV) on a small base in 2023 while e-commerce registered 14-15% growth during the same period.

Redseer Strategic Consultancy, a strategic advisory organisation, forecasts that q-commerce, currently valued at $2.8 billion, is positioned to emerge as a disruptive force, reshaping the retail industry. It also said that the q-comm market is expected to reach almost $5.5 billion by 2025.

The instant product deliveries resonate particularly well with gen Zs and millennials living in metropolitan cities like Bangalore, Delhi NCR, and Mumbai leading to the trend of purchasing from q-comm platforms. Additionally, existing users strengthened their instant purchase habits, increasing spending on q-commerce platforms.

Quick commerce has about one-third of the monthly users compared to online food delivery and one-fourth compared to online mobility. The monthly order frequency on q-comm platforms rose by 6% in 2023 and stood at 5.4 million compared to 5.1 million in 2022. This also shows that the business is likely to sustain 40-45% growth for the next three years.

The q-comm business understands its customer's buying habits and customises its offerings accordingly. Some of the leading platforms saw record sales on days like the Cricket World Cup Final, New Year's Eve, and Valentine's Day. They ensured the availability of relevant items, such as India team jerseys, snacks, and soft drinks for the CWC final, roses, gifts, and cake for Valentine's Day, and soft drinks, snacks, and ice cream for New Year’s Eve alongside running event promotions.

The availability of non-grocery items increased to 30% during October, November, and December (OND) 2023 compared to 20% during OND 2022. On the other hand, the sale of groceries saw a small decline from 80% during OND in 2022 to 70% during OND in 2023. This means there is room for growth, especially because many consumers use all these services.

This saw an increase in the average order value through expanding beyond groceries and focussing on high-priced items, optimising the use of dark stores, boosting ad revenues by reaching high-spending consumers effectively, and earning more commissions as their buying power grows with scale.

Many startup brands showcased on reality programmes like Shark Tank are also innovatively leveraging q-commerce platforms to expand their market reach and boost sales.