?? Zepto vs Blinkit: The Quick Commerce Showdown — A Tale of Speed, Strategy, and Survival ??

Picture yourself getting ready for a marathon, not in a stadium, but in the traffic heavy roads of Mumbai, right in the middle of the bustling rush hour. As much as you're hungry, you can't take a flight to the nearest cafe. You whip out your mobile, and order your favourite food, only for it to arrive at your doorstep in a matter of minutes. This is the swift of quick commerce and within this cut-throat competition are two warlords: Zepto and Blinkit .

I have seen many market shifts but nothing like the emergence of quick commerce. This is how, over the course of few years, something that was considered to be a gimmick in India has turned into a necessity. The tale of Zepto and Blinkit makes me think of the cliche situation of “David vs Goliath” – only in this case, it’s about data, delivery time and dimensions of hearts and clicks, in whom will capture the more.

?? The Clash of the Titans: A BCG Growth-Share Matrix Perspective

A year ago, with regard to Zepto, it was simply an underdog- a newcomer in the game and not very prominent. Such was the state of its affairs that it was classified as a "Question Mark" in the BCG Growth-Share Matrix it was uncertain whether they could challenge the well-established Blinkit, which sat comfortably in the "Star" quadrant. As far as Blinkit is concerned, it was already a giant in these waters with a grip of the market share estimated at 33 percent. But Zepto had other plans.

The other edge of the clock finds Zepto much ahead of what was anticipated with the number of daily active users (DAU) achieved a staggering increase of 86% while monthly active users (MAU) increased to about 92%(Source). This herd behaviour has taken the seekout app to closer to the "Star" quadrant, it is within reach of Blinkit. Blinkit, on the other hand, still holds the lion's share of users but has seen relatively modest growth in comparison.

?? Delighting Customers: The Kano Model in Action

The reason for rapid growth of Zepto can be explained with the help of their keen understanding of the Kano Model. The company has led the charge in attracting younger and technology savvy consumers through excitement attributes such as ultra fast deliveries of products and seamless app experience. The company has perfected the science of delighting the customers with its Zepto Bloom initiative becoming quite a masterpiece that enables the company to work hand in hand with local farmers for quick and quality produce.

In contrast, Blinkit has focused on their “Performance Attributes”? to keep the competition at bay – bigger user base, dependable delivery and higher average order values – AOVs at ?635, compared to Zepto (Source). But as Zepto continues to innovate, Blinkit’s core features risk becoming "Basic Expectations." Blinkit needs to rethink its value proposition if it wants to stand out.

?? Roadmapping the Future

Zepto's strategic roadmap is ambitious. It is centred on scaling and optimising operations. They've rolled out new features like express delivery and dark stores in urban centres, enabling them to meet demand at breakneck speed. Their geographic expansion in the tier one cities is highly calculated — targeting places like Bengaluru, Hyderabad, and Mumbai, which have proven to offer better buyer unit economics(Source).

Blinkit, while ahead in numbers, faces a roadblock — its growth has started to plateau. My suggestion to Blinkit would be to adopt a dual-focus strategy: continue scaling in urban areas but simultaneously expand into Tier 2 and Tier 3 cities, where quick commerce is still in its infancy. Which they have already started implementing.

?? Blinkit’s Path Forward

Based on the user reviews and experiences gathered from different forums across the internet, here are points which Blinkit can implement to overcome challenges for an increased customer satisfaction:

1. Geographic Expansion: While Zepto focuses on Tier 1 cities, Blinkit should aggressively penetrate Tier 2 and Tier 3 markets. These areas represent an untapped potential that could boost Blinkit’s overall user base. This will also provide Blinkit with an enhanced network of local artisans and their products.
2. Loyalty and Retention Programs: Zepto is rapidly acquiring users, but Blinkit still holds the loyalty of long-term customers. By rolling out subscription models or exclusive membership programs, Blinkit could lock in high-value customers and ensure they remain engaged.
3. Innovative Partnerships: Blinkit can explore partnerships with local businesses, similar to Zepto's Bloom initiative, to create a more localised and faster supply chain. This would not only improve delivery times but also build trust in these communities.
4. Transparent Pricing and Charges: Provide clear breakdowns of pricing, including itemised costs, taxes, and delivery charges, before order confirmation. This transparency can help build trust and prevent complaints related to pricing discrepancies or perceived overcharges.