Through a combination with the rapid commerce business Blinkit, which the Gurugram-based food aggregator recently bought, Zomato has begun testing grocery delivery on its app.
On August 27, clients in Delhi and the National Capital Region (NCR), commonly known as the NCR, were able to order goods through the Zomato app, but Bengaluru and Mumbai were not included. The Zomato app’s minimum order amount was Rs 49, whereas the Blinkit app’s was Rs 150.
Additionally, Colgate-Palmolive products were listed in the grocery section of the Zomato app with the label “sponsored,” indicating that the company uses the platform for ad monetisation like other e-commerce businesses.
Zomato is making its third try to dominate the supermarket market. It was originally attempted in 2020 during the Covid lockdown, but as the restrictions were loosened, demand decreased.
Given the significantly bigger digital ad spend budgets of consumer packaged goods (CPG) firms, Zomato founder Deepinder Goyal had earlier predicted that fast commerce’s ad sales revenue will be more than food delivery.
Earlier Blinkit had launched a printout service in Gurugram, charging Rs 9 a page for black and white printing and Rs 19 for coloured printouts.
“Quick commerce will help us increase the customer wallet share spent on our platform and also drive higher frequency and engagement from our customers,” Goyal had said while explaining the rationale behind the deal.
According to the business, fast commerce naturally encompasses a variety of product categories, including stationery, various gift goods, electronics, beauty & personal care, and OTC pharmaceuticals. Additionally, areas other than groceries aid the rapid commerce business in achieving better average order values and profit margins.
