Explained: why blinkit turns off some dark shops?

Posted by harsh sultayia on March 15th, 2022

Fast Shipping Firm Commerce Blinkit was studied to close 50 from dark stores throughout the country, resulting in hundreds of workpower, including dark shop managers, pickers and shipping workers lost work. This comes because the company looks for steps to reduce the rates of burns in the midst of the cash crisis.

The source told Indian Express that Blinkit had also delayed payments to vendors at least over the past two months. Two Dark Blinkit shop managers confirmed that the payment by the company had been postponed by an additional 10 days and said it also directed the store to start serving a 6-7 km radius, up from the start 2-3 km.

Until now, there seems to be no sustainable business model for fast trading companies. Until they begin to collect the cost of shipping users or introduce a kind of membership subscription plan, it is impossible for them to improve the finances of the operation. It can be a potential reason behind why investors Hesitate to pump additional capital into the current company, \"said Ventura Top Capital Executive, requested anonymity.

In an internal note to the employee last week, the collection of Co-Founder Blinkit Albinder Dhindsa said that the company has closed fundraising of $ 100 million. The source said that Blinkit raised capital in debt from Zomato, and could raise an additional $ 300 million from this year\'s food technology company. Zomato had previously invested $ 100 million in the company for a 10 percent stake in August last year after it had changed itself from Grofers to blink with a certain focus on 10 minutes delivery. At that moment, Blinkit said it closed the shops that were not ready to give an order within 10 minutes. Query sent to Blinkit and Dhindsa did not respond during publication.

Zomato Swiggy\'s biggest competitor has its own food ingredient delivery service in the form of Instamart, which is available as an integrated service in its home application. In addition, several other companies have entered the Q-commerce segment, including Zepto based in Mumbai, Bigbasket Group, travel companies, and Dunzo supported by Reliance Industries.