In a move to capitalize on the growing demand for ultra-fast food delivery, Zepto, the quick commerce company known for its lightning-fast deliveries, is set to launch a new standalone app for Zepto Cafe.
This new platform, dedicated to the company’s 10-minute food delivery services, will be launched next week, according to a December 11 post by Zepto co-founder and CEO Aadit Palicha.
The introduction of the Zepto Cafe app marks a strategic expansion as the company continues to explore new ways to scale its food delivery offerings.
While Zepto Cafe will be available through its own app, customers will still have the option to shop for café items like coffee, sandwiches, and more directly through the main Zepto app. This dual-entry approach mirrors a strategy seen earlier with Zomato, which split its services into separate apps, such as Blinkit, to enhance user experience and business performance.
Industry analysts have long debated whether food delivery platforms should follow the "super app" approach, similar to Swiggy, which consolidates services into one platform, or the "super brand" model, adopted by Zomato for different offerings like Blinkit. Zepto’s strategy currently blends elements of both approaches, with a dedicated app for its café offerings and a consolidated main platform for broader services.
An industry insider explained the rationale behind this strategy:
“There is a significant top-of-mind advantage to a separate app and Zepto is seeing the economics work stand-alone. So, a stand-alone app makes sense while also keeping a free channel of acquisition alive on the main Zepto app.”
Zepto Cafe has been scaling at a remarkable pace. According to Palicha, the company is expanding its café business quickly, launching over 100 cafes a month and already processing more than 30,000 orders daily. The growth of Zepto Cafe is significant, with the company projecting annualized revenue of Rs 160 crore for the segment, which it expects to grow to Rs 1,000 crore in the next few years, by 2026.
Palicha’s social media update highlighted the success of the venture:
“Cafe is scaling rapidly: we’re launching 100+ cafes a month and already clocking 30,000 orders per day.”
Zepto’s latest move comes at a time when the race for 10-minute food delivery is becoming increasingly competitive in India. The market has seen rapid growth, with numerous startups and established companies vying to capitalize on consumer demand for ultra-fast food delivery.
For instance, last month, Swish, a new entrant in the rapid food delivery space, raised $2 million from Accel and angel investors to compete with Zepto Cafe, Swiggy’s Bolt, and Zomato’s Everyday. Swiggy Bolt alone accounts for 5 percent of all food delivery orders, indicating the growing market share for these fast food services.
Zomato’s CEO, Deepinder Goyal, and Swiggy’s CEO, Sriharsha Majety, have both emphasized in interviews that 10-minute food deliveries are poised to become the next major frontier in the industry.
As consumer expectations evolve and demand for speed intensifies, quick commerce companies like Zepto are increasingly focusing on streamlining their delivery models to stay ahead of the competition.
Zepto’s launch of a dedicated app for Zepto Cafe signals its commitment to building a strong presence in the rapidly growing 10-minute food delivery sector. By combining a separate app for cafe-related services with its core Zepto platform, the company aims to enhance user experience, improve scalability, and ultimately capture a larger share of the market.
As the quick commerce landscape evolves, Zepto’s strategic decisions will play a crucial role in defining its position in the competitive food delivery space. Whether other companies follow suit in adopting a dual-app strategy remains to be seen, but Zepto’s move certainly sets the stage for an even more intense battle in India’s fast-paced food delivery sector.
Zepto's decision to launch a standalone app for its Zepto Cafe offering highlights the company’s commitment to capturing a larger share of the rapidly growing 10-minute food delivery market. By adopting a dual-app strategy, Zepto aims to enhance user experience while maintaining a streamlined approach to its core services.
This move comes at a time when competition in the quick commerce sector is intensifying, with both Swiggy and Zomato also expanding their 10-minute food delivery services.
With impressive growth in the Zepto Cafe segment, marked by a fast-paced rollout of new cafes and a high volume of daily orders, Zepto is positioning itself as a key player in the evolving quick commerce landscape.
The company’s projected revenue growth and commitment to scaling its café offerings signal a bright future for its 10-minute delivery business.
As the industry continues to innovate and evolve, Zepto’s strategic approach will likely serve as a model for others looking to capitalize on the growing demand for ultra-fast food delivery in India.
The competition between food delivery giants is only expected to escalate, but with a clear focus on consumer demands and operational efficiency, Zepto appears well-positioned to maintain its competitive edge in the 10-minute food delivery race.