Flink is an online grocery delivery platform that allows customers to order through its website or app. It boasts a 10-minute delivery time, although it may be exaggerative. Primarily, Flink competes with Instacart, which has become an indisputable name in the market. However, other companies like Uber, Lyft, etc., have expanded their operations into this market.
What is Flink?
Flink started its operations in 2020 under Oliver Merkel, Christoph Cordes and Julian Dames. The company started as a grocery delivery platform in Berlin, Germany. Its founders included a team of entrepreneurs and experts who had tried their hand in various corporate and entrepreneurial programs. Primarily, the operation started under Merkel, who spearheaded the Berlin office for Bain. He was the leading consumer goods practice in the consulting powerhouse.
Dames co-founded a food delivery startup known as Foodora. He also served as a CMO at Foodpanda. On top of that, he also had experience as a VP at Delivery Hero. Before founding Flink with the other founders, Dames was building businesses for SoftBank. Similarly, Cordes served as a former co-CEO of home24, an online furniture store.
Flink came through the hard work of its founders and their business expertise. Firstly, Merkel was an investor in Gorillas, which launched in 2020. At the time, Gorilla gathered significant attention for its novel delivery concept. Through this investment, Merkel received insights into the platform’s business metrics. Similarly, it gave him access to profitability information, such as profit margins and other finances.
Merkel convinced Dames and Cordes to join them. The team raised a first seed round of €10 million. At the time, this finance helped the business receive a €30 million valuation. Consequently, the founders used those funds to accelerate the launch process for their new venture. In 2020, Flink’s team acquired Pickery. It was a delivery app that had just launched in Hamburg. However, the team did not disclose the financial details behind the acquisition.
With the acquisition, the team also received access to its staff. Pickery’s founders, Saad Saeed and Nikolas Bullwinkel, joined Flink as directors. Similarly, this process gave Flink a significant boost through its experience and expertise in the sector. In 2021, the team rebranded Pickery into Flink and officially launched it to the public. At the time, it only served in the Hamburg area, like its predecessor.
However, Flink expanded its operations to other German cities within a month of its rebranding. Then, it was an impressive feat as the platform also supported the expansion through logistic activities. This expansion also helped Fink obtain more finance through investors. Consequently, the team used those funds to move into the Netherlands and France. Similarly, the company continued growth within the German market.
How does Flink work?
Flink is an online on-demand delivery app. It promises to bring groceries to customers in under 10 minutes. Like other delivery apps, Flink works through its platform. It includes its website and apps. Users can simply download those apps or visit its website to start ordering online. Before doing that, however, Flink requires them to register to use the app.
Once users register on the platform, they can order their groceries online. This process is similar to the one used by other grocery delivery apps, like Instacart. First, users can search a store from the given catalogue offered by Flink. Once they find a suitable store, they can order their item through the app. Consequently, they must make a payment, which covers their grocery costs and fee to the platform.
Users can also choose other details related to the delivery. It includes delivery times and slots. Similarly, the app provides them with real-time order tracking, detailing when their order will arrive. Although they are not accurate to the minute, the estimates aren’t far off the actual timings. After placing an order, users can use the app to track their food through the Flink dashboard on a map.
Flink provides the grocery details to the online grocer store. The store receives the order and forwards it to a vendor. Consequently, the vendor registers and lists food items on-site. At the same time, the online grocer store receives payment from the customer. It sends that payment to the admin team, who transfers part of it to the vendor. The vendor packs the goods before delivering them to the customer.
The whole process results in a fast and affordable way for busy people to order groceries online. Similarly, this process ensures they get their items delivered as freshly as possible. It is one of the most critical aspects of the Flink delivery platform. The short delivery times also help in this regard. Even for users who don’t have prior experience, the overall process is straightforward.
What is the Flink business model?
Flink primarily operates an e-commerce business model. The company uses the internet to attract users and make money. Moreover, Flink utilizes technology to solve real-world problems. In the past, most of these problems existed with no reliable solutions. However, the advent of the internet has created solutions for these issues. Through its business model, Flink delivers digital services to users.
Flink also utilizes a C2C business model where it primarily operates its platform. The company connects two parties, consumers and customers. In this case, the consumers include the users for the app and website. Usually, these users buy groceries through Flink’s platform. Customers, in contrast, are the grocery stores and delivery people involved.
Flink uses a similar business model as Instacart. The company also overlaps its operations with Uber, Lyft, GrubHub, Deliveroo, etc. Although those companies operate food delivery apps, they also overlap with Flink’s market. Flink allows users to order groceries through its platform. While users receive those goods, the company makes money from the underlying transaction.
One of the primary income sources for Flink is commissions. Therefore, the company also utilizes a commission-based business model. Apart from this model, Flink also makes money from other sources. These sources allow the company to increase its revenues and attract more customers. These sources have also proven to be profitable for other companies.
How does Flink make money?
Flink makes money from various sources. An explanation of each of these is as follows.
Grocery sales
The primary income source for Flink includes grocery sales. The company makes money from selling the grocery purchased and stored in bulk. Similarly, it charges markups on the price to increase its margins. On top of that, the company sources those items through its deal with REWE. Through these features, Flink makes money by selling groceries.
Delivery fees
Flink also makes money from delivering groceries to users. The company charges low delivery fees. For example, these charges are €1.80 in Germany. However, it still makes money from it. On top of that, payment processing fees imposed by payment card processors also apply to this process. However, these may not go into Flink’s revenues.
Peak hour charges
A secondary revenue source for Flink is peak hour charges. Like other delivery companies, Flink also makes more money during peak hours. The company charges more when it has more orders to process. This feature is similar to other companies in the market, for example, Uber, Lyft, etc. These revenues boost the income made from the sources mentioned above.
Advertising charges
Flink also uses its platform to advertise products and services to its users. The company offers ad spaces to grocery stores and other providers. Usually, Flink deals with each company individually. The company makes money for those providers to show their ads on the platform. The advertising income from these sources also constitutes a secondary income source for Flink.
Conclusion
Flink is an on-demand grocery delivery platform that offers services through its website and mobile apps. The company primarily operates in the European market, garnering significant attention. Primarily, Flink uses a complicated business model to generate revenues from various sources. The company makes money from those sources, as listed above.
