- Wealth PMS (50L+)
8 minutes 47 seconds – the average time for Zepto to delivery its order.
This eight-month-old start-up is valued at $570 million & is solving a problem that didn’t exist in the first place. Or is it?
Do we need a 10 min grocery delivery? The answer may be a no. But if someone is giving it anyway, then we will take it. This is a good enough reason to build a business model around it. Low & behold, this space had become a hot topic. More for VCs and less for consumers.
The online grocery war started in 2011 with Bigbasket, Grofers, Peppertap, etc. However, things quickly went south. In 2016, Grofers scaled down from 9 cities in India & Peppertap had shut down.
It took 8 years and $800 Mn of funding for Grofers to get their business model right (at least as per its founder) – The 10-minute grocery delivery.
Or shall we say, they were pushed to do so?
How does the 10-minute delivery work?
All the e-grocery start-ups have picked up a business model called Dark fulfillment centers or Dark Stores. The dark stores are just like a retail warehouse, where you store your products & process the orders. Think of it like cloud kitchens. They are not open to the public. The dark store location largely depends on buying frequency and traffic.
The founders of Blinkit & Zepto had received a shocking backlash from the people. The questions were raised on the safety of the delivery partners, their incentives, following traffic rules, etc.
I want to chime in about the hate we are getting for delivering groceries in 10 minutes… pic.twitter.com/RNhFvd6ojV
— Albinder Dhindsa (@albinder) August 28, 2021
To be fair, these guys are still pivoting the idea. It may take some time for the business model to evolve & get things in order.
As Swiggy, Dunzo, Bigbasket are also getting into 10 min delivery, the stakes are getting high. Zepto is on the race to become the youngest unicorn in India.
The game had just begun. We may not need a 10-minute delivery now. But a couple of years, down the line, this will be a Delta-4 change (see Kunal’s video below to understand it). At that time, our views may not remain the same.
Putting together the best conversations from our slack community
In this section, we bring you curated articles from across the internet that we found interesting. Today’s links are curated exclusively from our slack community:
That’s all, folks. Have a great weekend!
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