🚀 Zepto Cafe’s rapid rise
Zepto is taking bold steps to expand its 10-minute food delivery arm, Zepto Cafe. CEO Aadit Palicha announced a new stand-alone app on December 11. While Cafe products will remain accessible on Zepto’s main app, the separate app aims to enhance user experience and optimize orders. Zepto Cafe already handles 30,000 daily orders and contributes significantly to the company’s $19.2M ARR. With plans to hit $120M ARR by 2026, the service is scaling fast by launching over 100 cafes monthly.
💡 A blend of strategies
Zepto’s dual-app approach mirrors Zomato’s move with Blinkit while blending Swiggy’s integrated model. Both strategies have pros and cons. Zomato saw better results with Blinkit as a stand-alone app, while Swiggy keeps all offerings under one platform. Zepto aims to strike a balance by offering two entry points, enhancing accessibility for customers who prioritize food delivery. Palicha says, “Separate apps create a consumer top-of-mind advantage, and the economics work well.”
🔥 The 10-minute delivery wars
The quick commerce industry in India is heating up. Players like Swiggy Bolt, Zomato Everyday, and Swish are competing fiercely. Swish recently raised $2M from Accel, while Swiggy Bolt processes 5% of its total orders. Experts, including Zomato CEO Deepinder Goyal and Swiggy CEO Sriharsha Majety, believe that ultra-fast food delivery is the next frontier. Zepto Cafe’s growth signals its ambition to dominate this lucrative segment.
📈 Scaling for future success
Zepto Cafe’s rapid scaling highlights its ambitious plans. Beyond daily orders, its projected ARR reflects the service’s growing importance. With plans to tap $120M ARR by 2026, the company is doubling down on food delivery alongside its grocery arm. The upcoming stand-alone app will strengthen its position against competitors. The success of 10-minute delivery lies in balancing speed with profitability—a challenge Zepto appears ready to meet.
Can Zepto Cafe’s dual-app approach beat Swiggy and Zomato?
