Blinkit vs Zepto: A Full Comparison of India's Quick Delivery Giants

With regards to the rapid evolution of Zepto and Blinkit, it is observed that both are currently the most active players in the Indian quick Commerce sector, also called online grocery delivery services. They provide additional hyperlocal services such as fast meats, fast grocery delivery, and great customer service. Blinkit and Zepto, the names of the companies, are growing fast but not without their battle for claiming market share and becoming profitable. Today we will compare, analyse these two online grocery delivery giants and conclude who wins the crown of the leader in the Blinkit vs Zepto market leader war. Keep reading

 

About Zepto: 10 Min Grocery Delivery 

 Zepto, headquartered in Mumbai, is a new entrant to the hyperlocal delivery services commonly referred to as 'quick commerce'. The company is known for its 'instant' delivery of groceries and other daily needs, including food, flowers, clothing, and most recently electronics and gift items, expanding its role as a one-stop shop for consumers.

Zepto Founder

Zepto is founded by Aadit Palicha and Kaivalya Vohra

 

About Blinkit: Grocery in 10 Minutes

As part of Zomato’s family of companies, Blinkit also enjoys the sister brand advantage of Zomato’s massive delivery network. This allows timely delivery of groceries, electronics, fashion, and other household materials.

Blinkit Founder

Blinkit is founded by Albinder Dhindsa and Saurabh Kumar.

Let's compare these two brands in detail. About their app experience, company financials, speed of delivery, order experience, offers and discounts, etc.

 

Blinkit vs Zepto: Brief Overview

 

Financial Performance 

Comparison of Zepto and Blinkit financial performance.

Note: Zepto's figures are for FY24 and Blinkit's are for Q2 FY25.

 

Zepto And Blinkit Commission Increase

Zepto and Blinkit are increasing commission to boost revenue as both face tough competition. Recently Blinkit announced its transition to a new dynamic model effective March 13. Instead of fixed commissions ranging from 3%-18% set previously, commissions under the new structure will be pegged to selling prices.

Commencing with a 2% fee for items priced below Rs.500 and covering those priced Rs.500-700 with commissions of 6%, commissions of 18% will be applied to those very products priced above Rs.1,200. (Source: India Today)

In general, Zepto increased commissions charged to both users and brands to improve its unit economics. Blinkit, on the other hand, is reported by The Economic Times to have moved to a variable commission model for brands and sellers.

 

Zepto vs Blinkit: In-Depth Comparison

 

UI/UX Experience

 

App Speed Performance

 

Order & Delivery Experience

 

Offers & Discounts 

 

 

Future & Expansion Plans

     

1. Market Expansion

• By September 2024, Blinkit’s stores increased to 791 from 411 a year earlier.

• As of June 2024, Zepto has approximately 350 dark store locations.

• Both derive competition from Swiggy Instamart and BigBasket.

     

 2. Funding and Estimated Value

• In August 2024, Zepto raised $340 million, putting the company's value at $5 billion.

• Zomato funded Blinkit, which is now prioritising loss mitigation before any additional fundraising.

 

3. Scalability

• India’s retail groups continue to put pressure for antitrust investigations towards Blinkit and Zepto because of the negative impact of pricing.

 

Reviews

Zepto Reviews

 

Blinkit Reviews

 

(Source: Play Store)

On comparing reviews, it is clear Zepto has 23.9L reviews and has 4.7 rating, whereas Blinkit has 22.3L reviews and has 4.5 rating. So on the basis of rating only Zepto leads Blinkit. But Real rating depends on the total percentage of positive reviews and negative reviews.

Note: First three Reviews have been taken on the Play Store and for the mobile version only.

 

Blinkit vs Zepto: Which is faster?

 Both claim to deliver the grocery in 10 minutes, but let's check out which one fulfills its words. 

I had ordered a PeaNut butter from Blinkit and Aashirwaaad Aata from Zepto at my home location. So, which one delivered faster, you better see.

Zepto	Blinkit

 

In Zepto, the order was placed at 09:39 pm and it was delivered at 09:52 pm, approx. 13 mins, whereas Blinkit delivered the product in just 8 minutes. So based on this order delivery criteria, Blinkit wins.

Note: This is only a broader comparison. Because two different products were ordered on two different days and at different times. So exact and narrower comparison is not possible in this case. Delivering an order depends on the type of product, quantity of order placed, location, city, timings, traffic in that locality, weather conditions, etc. This comparison is only the consumer’s personal experience. Not for any judgment on any service provider company.

 

 

Challenges Faced by Blinkit and Zepto

Regarding quick commerce platforms, Zepto and Blink face a fair share of challenges due to India’s extremely unique conditions. Some of these issues are stated below:  

 1. Significant Operational Expenditure  

• Warehousing & “Dark Store” Maintenance: Owning dark stores (microfulfilment centres) throughout cities requires fixed costs.  

• Logistics & Delivery: The infrastructure needed to support a 1020 minute delivery model is extensive. Delivery riders get paid well, and fuel expenses add to the high costs incurred.  

• Non Profit Margins: In order to capture new customers, they tend to give unrealistic discounts, which makes their profit margin even lower.  

 2. Infrastructure Challenges & Traffic  

• Road Congestion: The major metropolitan areas in India experience vehicle traffic of a substantially higher volume when compared to the rest of the world. As it is, it makes ensuring packages are delivered on time a hassle.  

• Last-Mile Delivery Challenges: Overhanging structures and narrow streets slow down the ability to deliver to an address.  

• Harsh Weather Conditions: Delivery times are adversely impacted by extreme heat and heavy weather conditions like monsoons.  

 3. Unit Economics And Profit 

• Small Profit Margins: The quick commerce industry predominantly deals with groceries and essential items, which are already low-profit items.  

• High Burn Rate: Increased spending, especially towards aggressive expansion, along with paying for customer support, contributes to a fast rate of cash burn.   

 4. Market Saturation And Competition  

• Competitive Opponents: Existing competitive threats range from new entrants like Zomato into quick commerce, Swiggy Instamart, or even traditional convenience stores in the form of Kirana stores.  

• Deficient Customer Loyalty: Prone to switching from one platform to another purely based on discounts and delivery speed, are the consumers in India, which makes them price sensitive.

 5. Regulatory and Compliance Challenges  

• Labour Laws: The policies governing gig economy workers are still maturing, and additional oversight of delivery partners’ working conditions might inflate costs.  

• Food and Safety Compliance: Selling goods that can spoil requires compliance to FSSAI norms, making day-to-day operations more complex.  

 6. Growth Barriers  

• Tier 2 and Tier 3 markets: While metros remain the primary market, smaller cities are difficult to penetrate owing to low order value and poor economic activity.  

• Supplier and Inventory control: Logistically, maintaining balanced stock levels with perishables is extremely challenging.  

7. Profitability Challenges

• For FY24, Zepto’s loss stood at Rs.1,248 crore.

• As of Q2 FY 25, Blinkit is on the edge of breakeven with just Rs.8 crore EBITDA downside.

Zepto, along with Blinkit, is always looking to grow in light of persistent consumer demand for comfort, overcoming these challenges for them. Their profits will be a function of cost management, logistics cost optimisation, and customer retention. 

 

Conclusion

 With its speedy delivery services for groceries and necessities, Blinkit and Zepto are both major players in India's quick commerce business. Zepto is expanding quickly with the support of investors, whereas Blinkit, which is supported by Zomato, has a bigger market share and is getting closer to profitability. High prices, rivalry, and infrastructure problems are obstacles that each must overcome. The winner will be the one who, over time, strikes a balance between speed, efficiency, and profitability.