Hello. Would like to start off by saying I haven’t gone through the discussion in detail, and have briefly perused it. But, had some interesting updates in their operational metrics, which I would like to discuss the viability of. The crux of the argument is that the AOV for blinkit and other QC brands (Swiggy, zepto etc) have increased in the last two years, paving the path to profitability. The fixed cost took up a smaller percentage from the AOV, and improved unit economics. In my view, this was a crucial key to unlock the myth of sustainable quick commerce.
The importance that I place on QC is because I feel it would take over the food delivery business in the next 6-8 years, and investing in zomato should be looked as an investment in an industry of that ilk. The report that details their AOV and unit costs can be found here, was an interesting read! Apologies if it’s been mentioned before https://www.jmfl.com/Common/getFile/3278. Now, the question I have is motivated from recent orders I had placed. I’ve been ordering vim/chips/shampoo/soap from blinkit for a while now, and for the last 2 quarters the availability of small quantity SKUs in each category are getting harder to find. As someone used to the convenience of delivery within 10-20 min, I gave in and ordered a 500ml vim rather than 100ml, a big bottle of shampoo rather than a travel pack (which is what I intended). Is blinkit doing this on purpose? Making only the larger quantity versions available to synthetically drive AOVs? And, how would this impact the long run AOV?
Would appreciate everyone’s thoughts on the same. And, is there any way the average prices of the catalogue of blinkit’s offering over time can be found? Thanks
Disclosure: Invested
Subscribe To Our Free Newsletter |