Why do only a few vendors, like Moonstone Ventures LLP and Superwell Comtrade Pvt Ltd, dominate sales on Blinkit, especially considering that they operate 550-600 dark stores across India and that their key management personnel are connected to Zomato’s KMP? What percentage of profit does Blinkit contribute to these companies? How might this create opportunities for revenue leakage?
Disc: I’m not invested, but I’m curious about the supply chain operations and profitability of quick commerce.
Interesting note for understanding the Qcommerce model.
Qcomm is here to stay and grow, who would want to have an instore experience like Dmart if prices are same
How can prices remain same? Dmart optimises only for price. How can qcomm offer the same prices while providing delivery, such large assortment and what not
Check both the apps and compare
Ohh I thought you are comparing with their physical stores.
Are prices same between their app and physical stores?
Zomato shareholders’ letter and results
1. Gross Order Value (GOV) Growth:
2. Revenue:
3. Profitability:
4. New Store Performance:
5. Cash Position
6. Expansion:
7. Upcoming app launch
https://www.bseindia.com/xml-data/corpfiling/AttachLive/f2668990-81cf-4b19-9de5-ad64ab84236b.pdf
D: Invested
Adding the EMI feature can be an exciting optionality and opportunity. Can push the AOVs higher leading to higher take rates. Consumers would be more than happy to avail the convenience of the quick delivery as well as the EMI feature, especially around the Diwali season. Helps them avoid the crowd and queues. A clear fight for the leadership position with players like Amazon and Flipkar. While the other two are trying to find their feet in QC, Zomato is now trying to step in / disrupt the Ecom as well as the Retail space too.
Need to closely track the execution from them here as EMIs could be tricky to handle.
Disc: Invested
People who track Zomato for quick commerce growth as driver, please also track dmart thread for anti-thesis.
Disc: Have tracking position in both Zomato and Dmart.
While I respect Rakesh Jhunjhunwala sir’s insights, it’s worth noting that he made that comment about Zomato back in 2021 based on what was known then.
Since then, Zomato made some big moves, like acquiring Blinkit in June 2022. It’s important to consider that markets and companies evolve often in unexpected ways.
I would agree with Sahil, even Ashwath Damodaran has change his views on Zomato valuation now
Nope, the prices in offline DMart stores are significantly lower than the prices on DMart Ready app.
Currently, the closest online competitor to DMart offline stores in terms of pricing seems to be Flipkart Grocery which does next day slotted deliveries. That works profitably even while selling the products at low prices as the delivery boys do dozens of deliveries in one trip and the average order value is also significantly higher than that of quick commerce apps.
Flipkart’s model is sustainable due to low pricing, high inventory turnover, leading to fresh quality products restocked all the time, all of which results in repeat buying and customer loyalty. A similar EDLP strategy was championed by its parent Walmart in the US and also made DMart a well-oiled profitable machine while other supermarket chains have perennially struggled.
Yesterday I needed a couple of things urgently and ordered them on Blinkit. One of the products they delivered was a dusty packet which was packed 70 days ago and just 20 days away from expiry date. I’m amazed at how bullish some people are about the long-term prospects of quick commerce.
There is a bigger market for lazy people than Finicky people. Hence Quick Commerce has good potential. The competitors are Kirana stores and not other QCom players.
Disclosure - Among my Top 3 Exposure but added predominantly during double digits Price.
Does anyone knows are the average order value of of Peers versus Blinkit (exactly)??? This value is normally skewed due to large order ticket sizes like mobile or metal coins. However, quick commerce is a laser thin margin business and the existing Dark store business growth needs to be tracked. I want to track these two variables for Blink it. Please post if anyone has data for peers.
Sharing the transcript of the earnings call held on October 22, 2024
I find it very strange that no one talks about Hyperpure when its revenue is more than Blinkit. Anyone knows if Blinkit is a customer of Hyperpure? If yes, then how much does it contribute to Hyperpure’s revenue
From what i have seen is, Hyperpure sells raw materials to restaurants in wholesale packs, so it should not have much overlap with items being sold on blinkit. Yes, i also believe there are lot of unorganised/local players who sell raw materials to restaurants, i think if zomato sources directly form the manufacturer can offer better price points than local wholesalers.
