How Blinkit Plans To Compete With Urban Company: Full Scoop

Blinkit competing with the Urban Company

Blinkit- India’s last-minute app!

On reading the title you must have understood that Blinkit has taken its tagline too seriously. Yesterday we covered the buzzing news about how Blinkit is all set to compete with e-commerce giants like Flipkart and Amazon. You can read it here- Blinkit vs Flipkart. Now, Blinkit is planning to do the same with Urban Company!

Blinkit competing with the Urban Company

Means?

Blinkit is now planning to compete with the Urban Company!

Really?

Yes! Blinkit will integrate a new vertical to enter the at-home and handyman services… That’s not just a rumor but an authentic report! Blinkit has not only set up a new team but also hired a workforce from other companies to launch this vertical of “home services.”

Guess what?

Blinkit will fulfill the home services within 10-15 min similar to its grocery vertical. That’s what Blinkit is known for… isn’t it?

This is the golden line that makes Blinkit’s new plan, a threat to Urban Company’s existence.

But that’s not all…

Many factors are working behind the scenes which we will decode in this write-up. So don’t go anywhere and stay tuned!

(A) Synopsis: Blinkit’s Competition with the Urban Company

Urban Company vs Blinkit

In the world of home services, everything from haircuts to plumbing is happening, but it’s kind of chaotic with lots of unorganized players. The industry is booming, growing at a crazy rate, with a CAGR of 27.2%, and is set to hit a $65.51 billion valuation by 2026. 

Now, there’s this big player, Urban Company (UC), offering all sorts of services since 2014. You know about it quite well. Most of you might have used it too! 

Note: Here is a bonus for you. We have thoroughly explained the business model of the Urban Company. You can check it out for detailed information.

Everything was going well and good. And then suddenly the news headline says-

“Zomato Founder & CEO Deepinder Goyal resigned as an independent director in Urban Company’s Board to avoid a potential Conflict of interest.” He has been a board member of Urban Company since March 2022.

What’s the matter? You may wonder.

Blinkit wants to enter the vertical of home services too!

Blinkit, which is already rocking the 10-minute grocery delivery game, has got its eyes on the home services scene. They might be thinking there’s a lot more they can do. 

So, Blinkit wants to make your life easier by fixing urgent stuff like plumbing or electrical issues within 10 minutes. Their plan? Get you used to quick services, making you prefer smaller, frequent transactions.

Blinkit has a leg up with its logistics know-how from delivering groceries super fast. Plus, they know a bunch about what customers like from their grocery operations, helping them offer personalized services. But, here’s the catch – Blinkit has some hurdles, like training their people well and figuring out smart scheduling.

Despite the experts wondering why anyone needs a 10-minute delivery, Blinkit believes once you get used to the convenience, you won’t want to go back to the old ways. So, Blinkit is stepping into the home services world, promising to simplify things and maybe change the game a bit.

(B) Blinkit’s Upcoming Plans to Enter in Home Service Industry

Blinkit

As you know, the home service industry, covering a broad spectrum from beauty treatments to plumbing, is characterized by fragmentation and dominance from unorganized players.

Experiencing a robust growth rate of 27.2%, the industry is projected to reach a valuation of $65.51 Billion by 2026. The online “on-demand home service” segment stands out as the fastest-growing, with a projected CAGR of 60.77% until 2026. Urban Company (UC), founded in 2014, emerged as India’s largest online home services platform, offering nearly 100 services.

While UC enjoys a first-mover advantage, there is still untapped market potential, and the entry barrier remains low. Specialized players such as HouseJoy, Zimmber, and Yes Madam compete effectively in individual sectors, leading to a trend of verticalization within the industry.

Amidst this competitive landscape, established companies like Blinkit see opportunities for expansion and diversification in the on-demand delivery market. By introducing 10-minute grocery delivery services, Blinkit transforms into a convenience app, addressing daily inconveniences.

Let’s dive into the upcoming plans of Blinkit to enter the Home Services industry-

(B.1) Pioneering the “Last-Minute Home Services Market”

Blinkit’s strategy extends to pioneering the “last-minute home services market,” addressing urgent needs like plumbing and electrical repairs. This is particularly significant in areas outside newly developed residential societies where such services are not readily available.

(B.2) Adapting to Fast-Paced Lifestyles

Responding to the fast-paced lifestyle and evolving consumption patterns, Blinkit focuses on delivering unplanned services quickly. This strategic approach positions Blinkit to cater to the needs arising from uncertainty in households.

(B.3) Strategic Objectives: Ticket Size Increase and Operational Efficiency

Blinkit’s primary motivation for entering the home services industry is to increase its ticket size and reduce operational costs. The company’s emphasis on smaller, frequent transactions aligns with its model but relies on fostering customer habits of impatience for improved unit economics.

(B.4) Competitive Advantages of Blinkit

Blinkit leverages its logistics infrastructure from Dark Stores for quick grocery delivery, providing a foundation for efficient inventory and logistics management in the 10-minute home services domain. Access to customer data and analytics from grocery delivery operations enhances targeted marketing and enables personalized service offerings.

(B.5) Anticipated Challenges

Challenges for Blinkit include the comprehensive training of personnel for effective customer service. Additionally, dynamic scheduling, a shared challenge with Urban Company, requires deploying algorithms to optimize service provider matching based on location, availability, and expertise. We will look at the challenges in the upcoming sections.

(B.6) Consumer Adoption and Shifting Behavior

While there may be skepticism about the necessity of 10-minute delivery services, Blinkit anticipates a shift in consumer behavior. Once accustomed to quick and comfortable solutions, consumers may resist reverting to older systems, signaling a potential paradigm shift in consumer expectations.

(C) Blinkit vs Urban Company: Status in the Home Service Industry

Here comes the most anticipated part of this write-up. Blinkit vs Urban Company- who is the winner? Well, as you know Blinkit hasn’t launched its home services yet (it is planning as of now) so we can’t determine the winner. But we can check their current status and scope in the home service industry.

Let’s dive into Blinkit vs Urban Company in the following table-

AspectsBlinkitUrban Company (UC)
Founding YearFounded in 2013Founded in 2014 by Abhiraj Bhal, Varun Khaitan, Raghav Chandra
Primary Service Offering10-minute grocery and home services deliveryOnline platform offering nearly 100 home services
Market Entry StrategyDiversification from grocery deliveryEstablished as an online home services platform
Service Delivery TimeEmphasizes 10-minute delivery for convenienceProvides a range of home services with varying timeframes
Market PositioningPositioning as a convenience appDominates as India’s largest online home services platform.
Competitive AdvantageLogistics infrastructure for quick grocery deliveryFirst-mover advantage, extensive service offerings 
Strategic ObjectiveIncrease ticket size, reduce operational costsMaintain market dominance, explore additional services 
Challenges ForeseenPersonnel training, dynamic schedulingTraining and skill development, sustaining dominance 
Verticalization ApproachExpansion into last-minute home services marketOffers nearly 100 services with a broad service spectrum
Response to Market TrendsAdapts to a fast-paced lifestyle focuses on immediate unplanned needsContinuously expands service offerings, adapts to industry trends
Access to Customer DataGains insights from grocery delivery operationsUtilizes customer data and analytics for targeted marketing
Current StatusExpanding into the home services industryEstablished as the largest online home services platform
Competition LandscapeLimited direct competition as an on-demand delivery appFaces competition from specialized players and emerging startups
Industry ImpactAims to reshape consumer behavior towards quick and convenient solutionsHas significantly influenced and dominated the online home services sector
Blinkit vs Urban Company: Who is better?

So, what do you think about the battle of the Urban Company vs Blinkit? Who will be the winner? What we can conclude from this comparison analysis is that if Blinkit succeeds in offering supreme quality services in a short span (10-15 min) then surely it will be a winner.

But do you think Urban Company will let its position slide away that easily? Of course not!

It may offer impressive discounts, better services, or may mimic the 15-minute service delivery timing. 

Innovation is the king you know. The more creative and innovative your ideas are, the more you will prosper. That’s how the saying goes…

Well, time will tell who will be the winner in Blinkit vs Urban Company!

(D) Challenges for Blinkit in the New Vertical

Blinkit (Grofers)

Blinkit, Zomato’s venture into the home services industry, is gearing up to compete with the Urban Company (formerly known as UrbanClap). While this move presents exciting opportunities, it also brings forth several challenges. It is not gonna be a cakewalk for Blinkit.

Go through the following table to understand the challenges that Blinkit will face upon entering the home services industry.

Challenges for BlinkitDetails
Service Quality and ReliabilityUrban Company has already established a reputation for reliable and high-quality services. Blinkit will need to match or exceed these standards to gain customer trust. Ensuring consistent service quality across various home services (plumbing, electrician, beautician, etc.) will be a significant challenge.
Competition and Market ShareUrban Company has a head start and a strong foothold in the market. Blinkit will face stiff competition in attracting both customers and service providers. Gaining market share and convincing existing Urban Company users to switch will require strategic planning and aggressive marketing efforts.
Building a Skilled WorkforceRecruiting and retaining skilled professionals (plumbers, electricians, etc.) is crucial. Urban Company has an extensive network of trained service providers. Blinkit needs to build a similar network swiftly to offer a wide range of services.
Technology and Platform DevelopmentUrban Company’s platform is well-established, user-friendly, and efficient. Blinkit must invest in robust technology to create a seamless experience for users and service providers. Developing features like real-time tracking, secure payments, and customer support will be essential.
Regulatory Compliance and LicensingThe home services industry involves compliance with local regulations, licenses, and certifications. Blinkit must navigate legal requirements in different regions. Ensuring that all service providers meet legal standards is critical.
Pricing and ProfitabilityUrban Company has optimized its pricing model over time. Blinkit needs to strike a balance between competitive pricing and profitability. Offering attractive rates to customers while ensuring fair compensation for service providers is a delicate task.
Customer Acquisition and RetentionBlinkit will need to aggressively acquire new customers while retaining existing ones. Urban Company’s loyal customer base poses a challenge. Effective marketing, personalized offers, and exceptional customer service will play a pivotal role.
Scaling Operations EfficientlyAs Blinkit expands its home services vertical, scaling operations without compromising quality will be challenging. Managing logistics, service fulfillment, and customer expectations across multiple cities or regions requires careful planning.
Challenges that will be faced by Blinkit in the Home Services vertical

In essence, Blinkit’s entry into the home services industry is ambitious but not without hurdles. It will need to leverage Zomato’s resources, learn from Urban Company’s success, and innovate to carve out its niche in this competitive landscape…

(E) Setbacks for Urban Company

Urban Company Business Model

What drawbacks will the Urban Company face if Blinkit successfully enters the home services segment? You may wonder.

Let’s look at them one by one-

Challenges for Urban CompanyEventsDrawbacks
Competition IntensificationUrban Company already faces competition from existing players in the home services market. The entry of Blinkit would further intensify this competition, leading to a battle for market share, customer acquisition, and service quality.Urban Company may need to allocate additional resources to stay competitive, impacting profitability.
Customer Base SplitBoth platforms would vie for the same pool of customers seeking home services. As a result, Urban Company might witness a division of its existing customer base.Urban Company could lose loyal customers to Blinkit, affecting its revenue and growth.
Talent Retention and RecruitmentBlinkit would need to build a skilled workforce for its home services vertical. This could lead to a talent war, with both companies competing for plumbers, electricians, carpenters, and other service providers.Urban Company might struggle to retain its existing service professionals or attract new ones due to increased competition.
Brand Perception and TrustUrban Company has established itself as a reliable and trusted brand in the home services domain. The entry of a new player like Blinkit could raise questions about service quality, reliability, and safety.Urban Company may need to reinforce its brand image and reassure customers to to maintain their trust.
Pricing PressureBlinkit, being backed by Zomato, could potentially offer aggressive pricing to gain market share quickly. This might force Urban Company to adjust its pricing strategy.Urban Company could face margin pressure and reduced profitability.
Operational ChallengesScaling up home services requires efficient operations, logistics, and customer support. Both companies would need to handle service requests promptly and maintain service standards.Urban Company might encounter operational bottlenecks or service disruptions during peak demand.
Regulatory ComplianceCompliance with local regulations, licenses, and safety standards is crucial for home service providers. Blinkit and Urban Company would need to navigate these legal requirements.Urban Company could face legal hurdles or penalties if compliance issues arise.
Resource Allocation DilemmaZomato, as Blinkit’s parent company, might allocate resources strategically. If Blinkit gains prominence, Zomato could prioritize it over Urban Company.Urban Company may receive fewer resources or strategic attention, affecting it growth trajectory.
Challenges faced by the Urban Company

In short, the Urban Company must adapt, innovate, and maintain its competitive edge to thrive in this evolving landscape.

(F) Sum Up: Blinkit Plans to Compete with Urban Company

The more you explore the intricate competition between Blinkit and Urban Company, the more it becomes evident that Blinkit strategically forays into the home service sector.

We all are aware of the fact that Blinkit’s success lies in its 10-minute grocery delivery. It will use this tactic in the vertical of home services too!

Do you know who will be impacted the most through this?

You!

Yes, you are the one who is getting targeted by Blinkit. Once you get used to the convenience of getting home services or handyman work in 10 minutes, you will become a loyal customer of Blinkit Home Services. Your habits will change!

Through the brilliant utilization of logistics and customer data, the company not only competes but envisions flourishing in the realm of last-minute home services.

You know what? Urban Company won’t just sit back and watch Blinkit’s success. It will innovate its features too. We will get to know them soon and convey them to you once we get an authentic and official report.

Despite anticipated challenges, Blinkit’s unwavering commitment to convenience positions it as a formidable contender against Urban Company, promising a transformative experience in the dynamic landscape of on-demand services.

Let’s wait and watch! By the way, which one would you prefer- Blinkit or Urban Company? Don’t forget to share your thoughts in the comment section below!

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Published By: Supti Nandi
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