Zomato too slow? Zepto's new app delivers food in 10!
What's the story
Zepto, a major player in the quick commerce space, has announced plans to launch a standalone app for its 10-minute food delivery service, Zepto Cafe. The news was shared by Aadit Palicha, co-founder and CEO of the company, on social media. The move is similar to Zomato's strategy with Blinkit over a year ago. However, Zepto will continue to offer access to cafe items through its main app as well.
Business expansion
Zepto Cafe's rapid growth and future projections
Palicha also emphasized the speedy growth of Zepto Cafe, noting that they are opening more than 100 cafes every month and are already fulfilling 30,000 orders a day. Earlier this year, Zepto revealed Cafe is a major part of its business with an annualised revenue run rate (ARR) of ₹160 crore. The company expects this number to grow to ₹1,000 crore in ARR by 2026.
Market dynamics
Zepto's strategy amid rising competition in quick commerce
The decision to launch a separate app for Zepto Cafe comes as the company doubles down on food delivery, looking to diversify revenue streams beyond 10-minute grocery deliveries. The move comes amid intensifying competition in India's quick commerce space, with the likes of Swish raising major funding to take on the likes of Swiggy's Bolt and Zomato Everyday.