Zomato shares plunge right after subsidiary Blinkit’s print delivery announcement

Zomato’s shares plummeted by 7% intra-day today on 19th August despite the announcement of the new venture by Blinkit.

Blinkit, a subsidiary of Zomato that delivers groceries and consumables has started a new print delivery service in Gurugram, charging Rs 9 for black and white prints and Rs 19 for coloured with a Rs 25 delivery fee for every order.

Zomato’s shares plummeted by 7% intra-day today on 19th August despite the announcement of the new venture by Blinkit.

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At 1:40, shares of Zomato were trading at Rs 62.35 apiece on the BSE, down 6.34 %, while the benchmark Sensex was down 614.91 points 1.02 % at 59,627.65.

“We intend to be an organisation which is always innovating for our customers, and being able to provide services that help them lead better lives remains at the core of the Blinkit mission. We recently launched our print pilot in a few locations (including Sector 43 and Golf Course Road) in Gurgaon,” said a Blinkit spokesperson.

“We will look forward to launching the same in more locations (including Delhi) in the near future provided we notice the service being useful for our customers,” he added.

Blinkit is trying to expand and cater for the academic printing requirements of students and family documents like passports, visas, rent agreements, etc.

The CEO of Zomato, Deepinder Goyal explained his rationale for expanding in this line by saying, “Quick commerce will help us increase the customer wallet share spent on our platform and also drive higher frequency and engagement from our customers.”

According to a report by Moneycontrol, CEO Deepinder Goyal has introduced a new identity for the food company as the stock sees sell-off pressure.

Blinkit’s annual turnover in the last three fiscals has been – Rs 263 crore in FY22, Rs 200 crore in FY21 and Rs 165 crore in FY20.