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How Zomato Get Benefitted By Acquiring Blinkit
Use of assets (delivery fleet):- Adding a grocery delivery service to Zomato's operations should expand its scope of operations, giving it access to a wider selection of products (offerings) and use cases that span a bigger portion of a day. While grocery delivery has its own peak and off-peak hours, food delivery peaks around meals, on weekends, etc. Profitability increases as a result, as does asset (fleet) utilisation, which boosts the cost-benefit analysis. . 3. Build vs. Buy: Blinkit has created crucial infrastructures like a reliable technology platform, solid partnerships with outside parties, a complex dark-storage network, and a company that has attained respectable scale. Now, Zomato would have to spend a significant amount of time, money, and energy creating something akin to Blinkit. As a result, they decided against building and instead took the well-worn path of purchasing. The two main factors that would have driven Zomato to do this seem to be team and speed. How Zomato Get Benefitted By Acquiring Blinkit
2) Convenience of "15-minute delivery":- In May 2022, Blinkit monthly order frequency was 3.5 times greater than Zomato's food deliveries. Customers are more motivated to make impulsive purchases thanks to the convenience of "15-minute delivery," according to consumer data.Consequently, the integration of Blinkit's quick-commerce should result in a substantial extension of Zomato's addressable market
Step 2/3
3. Build vs. Buy: Blinkit has created crucial infrastructures like a reliable technology platform, solid partnerships with outside parties, a complex dark-storage network, and a company that has attained respectable scale. Now, Zomato would have to spend a significant amount of time, money, and energy creating something akin to Blinkit. As a result, they decided against building and instead took the well-worn path of purchasing. The two main factors that would have driven Zomato to do this seem to be team and speed. How Zomato Get Benefitted By Acquiring Blinkit
4) Synergistic:- Zomato's management team has made it very apparent that hyperlocal delivery alone cannot guarantee quick-commerce success. Blinkit would complement Zomato's enormous hyperlocal delivery network with its in-depth knowledge of supply-chain networks, sizable customer base, intricate dark-store network, connections with vendors and sellers, and robust tech stack.
Step 3/3
5) Ad Revenue:- According to Zomato, Blinkit has a higher potential for generating ad money than it does, which is a crucial source of income for businesses like this. Although the consumer categories of the two companies overlap significantly, statistics and market insights suggest that older user groups who have not yet used Zomato's food delivery service are already utilising Blinkit. Additionally, Zomato contends that quick-commerce generates more advertising money than food delivery since consumer brands and packaged goods spend far more on digital media than restaurants and cloud kitchens do. How Zomato Get Benefitted By Acquiring Blinkit
6) BlinkIt's Statistics:- In January 2022, Blinkit switched to quick-commerce. Its GOV (gross order value) increased by 35% by May 2022. Zomato's data indicates that Blinkit's revenue increased by more than 160%. These figures have led Zomato to conclude that the merger is likely to succeed.
Final answer
By purchasing Blinkit, Zomato has joined the frantic race for online success. In an effort to grow its primary business of meal delivery, it does this in an effort to catch up with Swiggy and a number of other younger firms in the quick-commerce sector.
How Zomato Get Benefitted By Acquiring Blinkit
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