Zomato, Blinkit soon to cross-leverage each-other’s customer bases, said Deepinder Goyal
On Tuesday, Zomato’s CEO, Deepinder Goyal said that once the Rs 4,447-crore (about $568 million) acquisition of Blinkit is closed, Zomato will experiment to cross leverage its customer base for Blinkit and vice versa.
Goyal said that super brands will work better than super apps in India.
In a letter to shareholders, he said that this means the Blinkit app will continue to operate independently. They will also start to work on integrating the delivery fleet back-ends which should drive higher delivery efficiency over time.
He further adds that the tech integrations between the two companies will speed up the pace of progress at both ends.
According to the company, every month, the losses for Blinkit are coming down from Rs 2,040 million (about $26 million) in January 2022 to Rs 929 million ($12 million) in July.
The company believes that Blinkit has also shut down a number of unviable dark stores, which were not scaling and the team would remain to evaluate non-performance stores.
In just six months, the business has scaled up to 20 percent of Zomato’s food delivery GOV while being available in less than 15 cities.
According to Zomato CFO, Akshant Goyal, Zomato had taken about 45 months since the launch of food delivery to reach to the current monthly GOV scale of Blinkit.