MANAGEMENT CONSULTING

END TERM EXAM

BLINKIT
 Quick Commerce Sector
A Growing Segment in the Grocery Shopping Industry
Growth Drivers Growth Challengers
• High CACs
• Huge opportunity
• Upfront Capex (20-
size(~45 BN USD)
30k USD per dark
• Cross-sell
store)
opportunities
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
• Assortment mix is
Swiggy 3,570
• High repeat ordering
Blinkit 692
not fixed, little to no
frequency
Ninjacart 367
data analytics
Licious 338
• Increase in avg daily
Zepto 161
• Inventory losses
Fresh to home foods 152
order for store
WayCool 152 (20% as high)
Jumbotail 143 • Higher AOVs
Country Delight 70 • Rider shortage
Fraazo 61

Online grocery startup funding in India as of February 2022 ...Witnessing Significant competition in business
 Growth Opportunities
Market outlook
• Indian online grocery market is valued at US$ 5.5 B in 2021
• Quick Commerce a USD 45 B opportunity (as of CY21)
Metro Tier 1 Tier 2+ Total Preferences for online grocery shopping in
250% India as of December 2020

51%
200%
Share of groceries

150%
80%

100%

60% 21%

50% 27%

22%
43% 7%
17% 7%
5%
4%
0%
Online(with delivery) Online (click & collect)
eGrocery Organized Unorganized

Acquiring mid-size quick commerce company in areas not

Scope of Business Development operating currently

… To Gain Competitive Advantage & Profitable

 NAME: SALONI SHARMA
NAME: SANTOSH MISHRA
AGE: 38 AGE: 24
EDUCATION: 10th Pass EDUCATION: Works in an MNC, Bengaluru

GOALS PAIN POINTS GOALS PAIN POINTS

• Land high paying job • Lack of stable jobs • To get grocery delivered at • Timing and schedule issues with
opportunities • Skill limitations doorstep job
• Basic Skills like communication • Limited satisfaction with earnings • To not waste time in grocery • Difficult getting specific grocery
in 2 languages & driving • Lack of training and confidence store after long work hours in nearby kirana store
• To get discounts and points for
loyalty subscriptions

MOTIVATION CHALLENGES MOTIVATION CHALLENGES

SKILLS
• Finding diverse assortments in one • Price hike in groceries and no
• To build stable life for family discounts in local kirana
• Communication gap click
• Flexibility in job timings and • To be able to easily browse through • Lack of variety and Assortment
• Technical issues
nature of business to reorder grocery mix
• To get personalized • Sometimes waiting for delivery
recommendations at home
Problem Statement
To achieve 10x growth and higher market share in BLINKIT
Competitor Overview • Blinkit has a slow
growing monthly active
users from its
competitors
• It can increase it’s area
of operating given the
opportunity size
• It needs to use
automation and new
technology to compete
in cities w.r.t delivery
times
What can be done?

Acquiring a mid-sized quick commerce company

• In area Blinkit is currently not operating, strategically and reduce TAT

• Lower last mile- delivery costs

Empower unskilled riders

• Train them for communication and technological application of apps

Increase Aov
• Offer personalized assortments
• Charge delivery and packaging fees for low-shelf life products

New Revenue Streams- Promotions & Collabs

Emerging themes for addressing

Drone Delivery (in Delhi NCR Focus on future-ready career

& Bengaluru) skills for riders

Blended private labels for Customer acquisitions

grocery in more categories through brand collabs with
eateries
Increased automation in dark Loyalty points introduction
stores

Out of these, Blinkit should be adopting some of the best practices that suit its business well.
 Key Recommendations

• Ensuring small aisles, efficient racking system to reduce packing time,

using automation to help riders pick easily
• Creating more private labels in Blinkit in different categories for better
revenue
• Bring more assortments in the mix and increase cart values and reorder
frequency
• Enhance Blinkit’s presence by collaborating with Food delivery apps
and content marketing in Social Media

• Introducing testimonial forums for riders and satisfied delivery partners

• Onboarding riders as brand ambassadors of Blinkit and not just as a stakeholder
• Bringing in farmers and producers to reach lower cities and expanding operations
to be able to grow sustainably- B2B partnerships with kiranas as dark stores
THANK YOU