Deepinder Goyal’s plan for Zomato’s Blinkit that may worry Amazon, Flipkart

Zomato’s Blinkit could reportedly add more brands across new categories as it aims to compete with ecommerce marketplaces like Amazon and Flipkart.

As the company aims to push into the fast-growing direct-to-consumer (D2C) area it could build its own supply chain to directly source branded products as well as manage stock, Economic Times reported. Zomato would deliver these through Blinkit as it has “had conversations with individual brand owners for various categories to stock up inventory. This is being seen as a potential long-term growth driver,” a source told the outlet.

Does this mean Zomato would own inventory?
No. As per the report, Zomato does not plan to directly own inventory. It would instead manage the flow of products for D2C brands.

How Shiprocket features in Zomato’s plans?
Zomato has “at least twice attempted to acquire and merge ecommerce enablement firm Shiprocket”, the report claimed. Shiprocket works with many D2C brands at present and Zomato bought a stake in it in 2021.

What has Zomato done till now?
While talks with Shiprocket continue, Zomato has “leased one warehouse each in New Delhi and Mumbai to support Blinkit’s ecommerce push,” the report claimed.

“New-age D2C brands in categories like home needs, small electronics, beauty and personal care are looking at quick commerce as a growing channel for sales. Blinkit has a strong footing there. Now, Zomato wants to set up a backend structure, where it would work directly with brands and help them sell on Blinkit. With this, the company gets greater control over its supply chain,” an industry watcher told Economic Times.

Has Blinkit been offering some of these products already?
Blinkit has been selling occasional items such as flowers, earthen lamps and stuffed toys. It has also featured high-value goods such as top-end smartphones.