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Zomato CEO Deepinder Goyal has resigned from Urban Company’s board as Zomato-owned quick delivery app Blinkit is piloting home services similar to Urban Company.
According to sources who spoke to businessline on condition of anonymity, Goyal being on the board of Urban Company would have been a conflict of interest as Blinkit is considering to enter same space. “Goyal was also not able to spend much time on Urban Company, as Blinkit and Zomato occupied most of his time. It should be noted that Goyal has been on Urban Company’s board for less than a year,” one of the sources added.
Goyal became an independent director on Urban Company’s board in April 2022. Blinkit currently operates in multiple categories including fresh products, groceries, meat, pet care, personal care, pharma & wellness among others.
Zomato and Blinkit did not comment on businessline queries till the time of press.
Increase in GOV
Blinkit’s gross order value (GOV) grew 18 per cent QoQ in Q3 FY23, driven by a 21 per cent growth in order volumes which compensated for reduction in AOV (average order value). All of Blinkit’s growth is said to have come without any expansion in the company’s dark store footprint. Further, the quick commerce company’s profitability also continued to improve with contribution margin (as a percentage of GOV) improving from -7.3 per cent in Q2FY23 to -4.5 per cent in Q3FY23.
At the time of announcing Q3 FY23 results, Goyal said any macro slowdown doesn’t have a visible large-scale impact on Blinkit’s growth metrics as it is an early stage business. “Blinkit is also less impacted vis-à-vis the food delivery business as our typical purchase basket tends to be more skewed towards essential / non-discretionary spends. 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. Overall however, the last quarter was the highest ever in terms of new and returning customers,” he added.
Entrackr was the first to report this development.
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