Zepto's New Cafe App: A Bite-Sized Venture into Quick Commerce

Zepto's New Cafe App

FEATURED BUSINESS NEWSBUSINESS NEWS

12/12/20241 min read

Zepto, the lightning-fast grocery delivery startup, is expanding its horizons with a dedicated app for its 10-minute food delivery service, Zepto Cafe. This strategic move aims to capitalize on the growing demand for quick and convenient food delivery in India.

A Separate App, A Focused Approach

While food items will still be available on the main Zepto app, the new dedicated app will provide a streamlined experience for customers seeking quick meals. This focused approach allows Zepto to tailor its offerings and marketing efforts to the specific needs of food delivery customers.

Zepto's Cafe business is already gaining significant traction. The company is reportedly opening over 100 cafes per month and processing 30,000 daily orders. With an annualized revenue run rate (ARR) of Rs 160 crore, Zepto aims to reach a staggering Rs 1,000 crore ARR by 2026.

The Great App Debate: Zomato vs. Swiggy

The launch of Zepto's dedicated cafe app sparks an interesting debate in the quick commerce industry: should companies adopt a "super app" approach like Zomato, where various services are offered within a single app, or a "super brand" approach like Swiggy, where new services are integrated into the primary app?

Zepto's strategy seems to blend elements of both approaches. While the cafe service has its own dedicated app, it's still accessible through the main Zepto app. This hybrid approach allows Zepto to leverage the strengths of both strategies and cater to a diverse range of customer preferences.

As the quick commerce landscape in India continues to evolve, companies like Swiggy, Zomato, Zepto, and others are vying for a larger share of the market. With its focus on speed, convenience, and a growing range of services, Zepto is well-positioned to become a major player in the industry.