Why Blinkit is Falling?

Imagine someone giving you 7500 crore rupees to establish a company, and you utilize it wisely to not just address issues but also win people’s hearts. Everything was going well; the company was growing every day, and you and your team began to plan for an IPO; but, instead of an IPO, the company was sold to another firm.

This is the story of Grofers, a firm that used to meet our requirements at home but now confronts problems on a daily basis. Grofers, which was founded in 2013, was set to go public in 2021. However, in a $700 million transaction, it combines with Zomato. Furthermore, while firms like Swiggy and Zepto continue to grow, Grofers is on the brink of shutting down. 

Why did Grofers, a well-known brand, change its name? Swiggy and Zepto struck Grofers hard, didn’t they? What happened wrong that a corporation that has been around for so long now needs to deal with all of this?

What is the exact Turmoil?

In 2013, Saurabh Kumar and Albinder Dhindsa realized that everything was done through phones, whether it was ordering meals or reserving a cab. Everything was completed with a single tap on your phone. They had thought at the moment.

They reasoned that because everything can be done over the phone, why go out for groceries? This may also be done over the phone. Grofers was born out of this. Grofers began rapidly expanding in a short period of time after receiving significant finance. Grofers soon fulfilled over 50,000 orders every month.

Grofers and Big Basket were the sole online grocery delivery providers in India till 2021. Then something happens, and the fate of the corporations that have dominated this market for so long is irrevocably altered. Grofers was one of many grocery delivery businesses that launched in 2013, but none of them succeeded, from Local Banya to PepperTap.

But why is this the case? Few people are aware that, as easy as the internet delivery sector appears to be on the surface, it is far more difficult on the inside. It features a number of components that aren’t obvious on the surface yet are accountable for starting failure.

Peppertap, Local Banya, GrocShop, FlashGroc, and Getnowmarket, all were also in the online grocery delivery space. But Grofers alone did something that made it survive. From PepperTap to Local Banya, they had a single vision, to deliver groceries to homes within 1-1.5 hours. It’s an amazing idea but it has a huge disadvantage. It would disrupt the entire company’s cost structure.

Grofers had a genius strategy for this. But to understand this, you’ll have to first understand how the online grocery delivery business works. So, most startups would work in this way. The customers would order on the app. This would go to the shopkeeper they had tie-ups with. And then a company delivery boy would collect and deliver it.

Number one, there is no quality control. Only the shopkeeper’s highest quality was supplied to clients. The absence of inventory is number two. Customers could only purchase items from the shopkeeper’s stock. Customers would have a lot of trouble if the shopkeeper didn’t have inventory. Number three, there is a high cost but a poor profit margin.

As a result, most grocery delivery businesses would attract clients by promising discounts, only to lose them due to bad service. But, guess what? Only Grofers modified its whole business model out of all the startups. First and foremost, Grofers discontinued their 90-minute delivery service because they realized after surveying the market that no one is in such a rush that they want their groceries in 90 minutes.

Final Conclusion on Why Blinkit is Falling

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