Blinkit to launch vertical for home services, will come in direct competition with Urban Company: Report

• ByStartup Story Team     |    March 1, 2023

Zomato owned Blinkit is likely to launch a new vertical to offer Urban Company-like services—including plumbing, electrician, beautician, and electronics repair—with the aim to diversify its revenue streams.

The details are not yet out, but the service is expected to be live in the coming weeks. It is still in limbo whether it will be integrated within Blinkit’s app or not.

The new venture will put Blinkit in a direct heads-on competition with Urban Company.

In the wake of this development, Zomato Founder and CEO Deepinder Goyal has also resigned as an independent director in Urban Company’s Board to avoid a potential conflict of interest. He was appointed to UC’s Board in March 2022.

Blinkit has formed a new team from the existing employees and hired workforce to launch the new vertical with full preparation. It aims to provide speedy delivery of services within 10-15 minutes, just like its grocery vertical does.

The moves come at a time when quick commerce is struggling with headwinds of the market and keeping up with the high cash burn.

In the third quarter of FY22, Blinkit registered a 21% year-on-year growth in order volume. The average order value (AOV), however, fell marginally to Rs 553 from Rs 568.

“The slight downward pressure on AOVs might be a result of the slowdown where customers are preferring to buy smaller packs instead of larger ones,” said Albinder Dhindsa, Founder and CEO of Blinkit, previously known as Grofers. He, however, said the third quarter was the highest ever in terms of new and returning customers, without divulging numbers.

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