New Delhi [India]: A report by HSBC Global Research suggests that introducing a Super-Saver offer similar to Zepto’s strategy may not align with Blinkit’s current business model.
According to the report, if Blinkit were to adopt a Super-Saver program like Zepto’s, it could boost its Average Order Value (AOV) to Rs 1,200. However, this move could reduce its EBITDA margins to 3.5 per cent, down from the current 6 per cent.
Currently, Blinkit maintains a higher AOV of around Rs 670 and has established itself as a premium, convenience-driven quick-commerce platform. Offering steep discounts to increase order values may cannibalize its core business model and negatively impact profitability.
Under the current model, Blinkit’s projected absolute EBITDA is estimated to reach USD 1.3 billion by FY30. However, introducing heavy discounts could lower this figure to USD 1.1 billion.
Notably, Blinkit has consistently been the most expensive quick-commerce platform based on pricing checks. It also does not provide a loyalty program like Zepto Pass or Swiggy One. This reflects Blinkit’s strategy to position itself as a “convenience app” rather than a “value app,” emphasizing fast delivery and an extensive product range rather than bulk discounts.
Meanwhile, Zepto’s Super-Saver program is aimed at capturing a larger portion of the grocery market by offering significant discounts on bulk grocery purchases. The program requires a minimum AOV of Rs 999, which is more than double Zepto’s typical AOV.
By encouraging households to place larger, planned orders, Zepto is expanding into the value retail segment traditionally dominated by modern retail outlets and mom-and-pop stores.
Although Zepto’s Super-Saver program may lower its EBITDA margins to approximately 3 per cent compared to its standard 6 per cent, the strategy aims to maintain or even increase overall earnings due to higher spending per order.
This shift indicates Zepto’s effort to expand its Total Addressable Market (TAM) by serving both spontaneous grocery needs and planned purchases.
If Zepto’s strategy succeeds, it could reshape the quick-commerce industry by proving that platforms can effectively cater to both convenience-based and bulk grocery shopping.
However, the move comes with risks. Heavy discounts and a focus on bulk purchases could strain profit margins, and it remains uncertain whether consumers will fully adopt quick-commerce platforms for their planned grocery needs in the long run