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Blinkit will deliver jewelry in 30 minutes from next year
The initiative will be supported by a network of 'express dark stores'

Blinkit will deliver jewelry in 30 minutes from next year

Oct 21, 2024
01:01 pm

What's the story

Blinkit, Zomato's quick commerce platform, is looking to launch a new category of high-value items (like jewelry) with a 30-minute delivery time. The initiative will be supported by a network of "express dark stores," and is expected to go live by mid-FY26. The move will help the company boost its average order value (AOV), and step up competition with e-commerce giants like Amazon and Flipkart.

Dark store details

Express dark stores: The backbone of Blinkit's new initiative

Blinkit is gearing up to set up express dark stores, which will deliver high-value items like instant water heaters and air purifiers in 30 minutes. These express dark stores are basically mini warehouses of 7,000-8,000 square feet. They will hold larger products that need more storage space than the regular items, currently delivered by Blinkit in 10 minutes.

Profitability strategy

AOV and profitability: The driving factors

The 30-minute delivery of high-value items is part of Blinkit's plan to increase its AOV and improve profitability. In the quick commerce space, a higher AOV usually means better profit margins. Blinkit already has one of the highest AOVs in the space at ₹614, surpassing rivals like Swiggy Instamart and Zepto, which have AOVs in the ₹450-480 range.

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Sector evolution

Quick commerce sector: A shift toward longer deliveries

Blinkit's shift toward 30-minute deliveries is in line with a wider trend in the quick commerce space, where companies are looking at longer delivery times for high-value products. Tata's BigBasket is also eyeing a similar route, looking to partner with stores like Croma and Cliq for 30-minute deliveries of expensive items. Industry experts believe while 10-minute deliveries will continue to cater to their target audience, longer delivery times could boost overall quick commerce penetration.

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Delivery economics

The profitability of longer delivery times

Sahil Barua, co-founder and CEO of Delhivery, has also pushed for longer delivery times, given their potential profitability. He argues that two to four-hour deliveries in metropolitan areas could be more economical, thanks to route optimization and consolidation opportunities. Barua also points out that sub-one-hour or sub-30-minute deliveries won't disrupt e-commerce much unless they include high-value products.

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