Blinkit suspends delivery in areas that it cannot service in 10 minutes

Bengaluru: Blinkit, a quick commerce startup formerly known as Grofers, has suspended deliveries in areas that it cannot service in 10 minutes, cofounder Albinder Dhindsa said on Monday.
“In the near term this call will have a significant impact for our business size and for a large number of our customers,” Dhindsa said in a Twitter post. “We expect this to impact around 75,000 of the 200,000 dailly customers we are serving. The company is ramping up fast, opening a new store every 4 hours and it is expecting to serve affected customers within 4 weeks.”

The decision comes on the back of the
company’s rebranding from Grofers to Blinkit amid increasing competition in the space, with well funded startups like Mumbai-based Zepto, Swiggy’s Instamart and Google-backed Dunzo all promising to deliver groceries and other essentials in 10-20 minutes. Zepto’s USP is 10-minute delivery.
“We hope to be insanely consistent with our 10 minutes promise and apologise to our affected customers in advance,” Dhindsa said in his post.

Last week, Dhindsa
told ET in an interaction that the rebranding was done to indicate the company’s focus on quick commerce, which is beyond groceries. This includes anything that a customer would want in 10 minutes — be it stationery, electronics like mobile chargers to even heaters during winters. For the model to work, the companies operating in the space will have to find product market fit at a city level and even community level.

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“Each city is different. Every community requires customisation. If you are making that level of customisation, you get product market fit and you will see demand being created,” he told ET last week.

Blinkit is present in 12 cities but Dhindsa said it will take the model to 100 cities by the end of March 2022. It operated 250 dark stores and plans to expand to 550 dark stores by the end of January. Dark stores are small warehouses located in the heart of a city through which orders can be delivered faster.

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