Zomato, Blinkit, and the 10-Minute Gamble
For years, Zomato was synonymous with restaurant food. Now, it wants to be synonymous with toothpaste, chips, cold coffee, and toilet paper — delivered in under 10 minutes.
The Blinkit Bet
In 2022, Zomato acquired Blinkit (formerly Grofers) in a ₹4,447 crore all-stock deal. Many saw it as a panic move. Quick commerce was exploding, and Zomato didn’t want to get left behind. Fast forward to 2025, and Blinkit is Zomato’s fastest-growing business.
But beneath the hockey-stick growth lies a question: is this model sustainable, or is it built on venture capital fumes?
What’s Working
Blinkit now operates over 600 dark stores across India’s top cities. Orders arrive within 10–15 minutes. The average order value has crept up to ₹580, and the number of orders per day routinely crosses 5 lakh.
Zomato has also started cross-leveraging its base. Zomato Gold users get free Blinkit deliveries. Restaurants now stock emergency items via Blinkit logistics. There’s clear synergy — at least on paper.
But is it Profitable?
Let’s break it down:
- Margins: Gross margins hover around 16–18%, but net profit is elusive.
- Delivery costs: Shrinking due to dense store networks but still high for low-ticket items.
- Retention: Blinkit users are sticky — but only when discounts are flowing.
The business burns less than before, but profitability still depends on scale, private labels, and bundling.
The Competitive Heat
Zepto, Swiggy Instamart, and BigBasket Now are not standing still. All three have deep pockets, better logistics experience, or stronger grocery roots. And unlike Zomato, some aren’t beholden to quarterly investor calls — they can play long.
The Regulatory Hurdle
Ultra-fast commerce is drawing attention for the wrong reasons — traffic accidents, labor concerns, and warehousing norms. The Delhi government has already floated regulation ideas. Others may follow.
The bata takeaway
Zomato is no longer just a food company — it’s a logistics experiment chasing consumer convenience.
If Blinkit works, it gives Zomato a daily habit loop and infrastructure leverage. If it fails, it could be India’s WeWork moment — growth without ground.