Blinkit Foods is proposed to be incorporated as a wholly owned subsidiary with a total paid-up capital of Rs 10 lakh
Eternal, the parent company of Zomato, informed on Monday that it will open a new service to compete with Zepto Cafe. Known as Blinkit Foods, the new service will deal with preparing, selling and delivering food to customers.
The company stated in a stock exchange filing that Blinkit Foods is proposed to be incorporated as a wholly owned subsidiary with a total paid-up capital of Rs 10 lakh and would inter alia engage in the business of providing food services.
“Blinkit Foods, once incorporated, will be a wholly owned subsidiary of the company and a related party. Further, the company is professionally managed, with no promoter/ promoter group,” Eternal said in a regulatory filing.
This debut enhances Blinkit’s previous business, Bistro, which was introduced earlier and is owned by Zomato. Initially running as a pilot in a few areas of Gurugram, Bistro is a quick-commerce food delivery app that promises to deliver snacks, meals and drinks in roughly 10 to 15 minutes.
On the other hand, on account of challenges like sourcing products and shortage of trained staff to run kitchens, Zepto Cafe, the food delivery service from the quick commerce platform, has scaled down operations, as per media reports.
The reports noted that the development comes at a time when the sector is heating up due to intense competition from Blinkit’s Bistro and Swiggy’s Snacc. Zepto is putting efforts to control the cash burn, the reports highlighted, while adding that the company has slowed the introductions of its dark stores or mini warehouses as well.
