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What Is Deepinder Goyal’s Future Plan For Zomato That May Be Worrisome For Amazon And Flipkart?
Zomato's Blinkit aims to compete with Amazon and Flipkart by expanding into the D2C market. It will manage inventory flow but not own products. More details inside.
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Zomato is expanding, aiming to compete with Amazon and Flipkart
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Zomato plans to manage the flow of products for D2C brands
Zomato, the popular food delivery app, is reportedly gearing up to expand its services beyond just food delivery. According to a report by the Economic Times, Zomato's subsidiary, Blinkit, is looking to add more brands across new categories, aiming to compete with established e-commerce marketplaces like Amazon and Flipkart. This move comes as the company eyes the fast-growing direct-to-consumer (D2C) area.
What does this mean for Zomato?
Contrary to some speculations, Zomato does not plan to directly own inventory. Instead, it is looking to manage the flow of products for D2C brands. This means that Zomato would build its own supply chain to source branded products directly and manage stock, but it would not own the inventory itself.
Zomato has reportedly attempted to acquire and merge with Shiprocket, an e-commerce enablement firm that works with many D2C brands. Zomato bought a stake in Shiprocket in 2021, indicating its interest in strengthening its e-commerce capabilities.
While discussions with Shiprocket are ongoing, Zomato has already taken steps to support its e-commerce push. The company has leased warehouses in New Delhi and Mumbai to facilitate Blinkit's expansion into e-commerce. This move is seen as a strategic step to establish a backend structure that allows Zomato to work directly with brands and help them sell on Blinkit.
What products could Blinkit offer?
Blinkit has already dabbled in selling occasional items like flowers, earthen lamps, and stuffed toys, as well as high-value goods like top-end smartphones. However, with Zomato's push into the D2C market, it could potentially offer a broader range of products, including those in categories like home needs, small electronics, beauty, and personal care.
Zomato's expansion into the direct-to-consumer market through Blinkit is a significant move that could potentially reshape the e-commerce landscape in India. By leveraging its existing infrastructure and partnerships, Zomato aims to compete with established players and offer consumers a more comprehensive range of products through its platform. As the company continues to evolve, it will be interesting to see how it navigates the challenges and opportunities in the D2C space.
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