Blinkit Pivots To Variable Commission Model To Improve Take Rate

Zomato-owned quick commerce platform Blinkit is reportedly revamping its commission model and shifting from fixed rates to variable pricing based on selling price, as the Albinder Dhindsa-led company looks to improve its bottom line.

While Blinkit currently charges sellers and brands selling on the platform a fixed rate of 3-18% depending on the category, the company is set to introduce a revised structure, wherein commission will vary depending on the selling price of items, ET reported, citing sources.

The move, which will come into effect from March 13, is expected to help Blinkit improve its take rate, which is the percentage of revenue the company earns on gross order value.

Inc42 has reached out to Blinkit for comments on the development. The story will be updated on receiving a response. 

It is pertinent to note that Blinkit is not the only quick commerce player revising its commission structure. As per a report by Financial Express, its rival Swiggy Instamart is also likely to increase the commission rate to 20-22% from 15% earlier.

The revision in the rate structure comes at a time when Blinkit’s bottom line has taken a hit amid aggressive dark store expansion and intensifying competition in the quick commerce market.

Blinkit posted an adjusted EBITDA loss of INR 103 Cr in Q3 FY25 as against a loss of INR 8 Cr in the preceding September quarter. 

In a recent research report, brokerage firm Bernstein noted that the quick commerce market in the country is witnessing an aggressive land grab by players like Blinkit, Swiggy Instamart and IPO-bound Zepto. 

Blinkit added 216 new dark stores in the December quarter of the fiscal year 2024-25, taking its total count to 1,007. It now aims to almost double its dark store count to 2,000 by Q3 FY26. In comparison, Instamart had 705 dark stores as of December 31, 2024 and scaled its quick commerce presence to 76 cities. 

Meanwhile, Aadit Palicha-led Zepto doubled its dark store count to 700 in 2024 as compared to 350 a year ago.

The entry of new players has further heightened the competition in the quick commerce market. While the likes of Flipkart, Amazon and BigBasket have pivoted from grocery delivery to a quick commerce model, new-age tech startups like Blip, Farmako, and Swish are targeting specific categories.

This comes amid rising demand and a surge in sales in the segment. Blinkit, Instamart and Zepto together recorded nearly $1 Bn in sales in FY24.

Amid the raging battle in quick commerce, earlier this month, Zomato cofounder triggered a controversy after he said that Zepto alone accounted for half of the estimated INR 5,000 Cr quarterly burn witnessed by the ecosystem. Palicha refuted these claims and termed Goyal’s comments “verifiably untrue”.