Blinkit to become bigger than Zomato in one year? What Deepinder Goyal said: ‘In any business…’
Blinkit’s growth has outpaced Zomato’s core food delivery business in the third quarter (Q3) of financial year 2023-24 (FY24). What Deepinder Goyal said on this
Zomato’s chief executive officer Deepinder Goyal said that quick commerce platform Blinkit could become bigger than the food delivery business in a year as he asserted that for a company to survive in the long run, it must disrupt itself.
He said, “For instance, right now we have a business plan competition going on within the company, which will focus on offering funds to a small team, which will come up with a plan to disrupt the businesses that we are in right now. That could lead to Zomato version 5 or Blinkit version 2. Blinkit is a part of Zomato version 4, and in one year’s time, Blinkit could be bigger than Zomato."
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What Zomato and Blinkit financials show?
Blinkit’s growth has outpaced Zomato’s core food delivery business in the third quarter (Q3) of financial year 2023-24 (FY24) with gross order value (GOV) growing 103 per cent year-on-year (YoY) in Q3. Zomato at the end of Q3 FY24 had a revenue of ₹2,025 crore while Blinkit clocked ₹644 crore.
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What Deepinder Goyal told shareholders?
In a recent letter to shareholders, the CEO claimed that Blinkit would drive more value for shareholders in the next 10 years than Zomato as he asserted, “None of the business models that are being created right now will last beyond a decade because with all the tech and distribution systems that are changing. You have to innovate and create new businesses from the outcomes you’ve created so far if you want to last longer."
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What Zomato CEO said on business and market changes?
He said, “In any business, there will be a change. So, as soon as we start saying that nothing will change, we are dead." To build a successful long-term business, he said that the most important moat is having good company culture.
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“When we asked our entire team to take voluntary salary cuts, we didn’t force it on anyone. About 80 per cent of the team decided to take voluntary salary cuts. That’s building a strong culture. Culture is the only long-term moat. You may say the product is the moat, or the distribution is the moat. None of these are moats because they will not last long," he explained.
