This India Startup Has Launched 10-Minute Food Delivery ‘Cafe’ In Mumbai! How Will It Work?
The 10-minute grocery delivery app Zepto, has started food delivery in Mumbai on its app through an offering called ‘Cafe’, escalating the battle in the quick commerce space.
Zepto’s new venture – Break time essentials
Zepto, which changed its stream and moved to the online grocery space last year promised to deliver essentials in 10 minutes or less, is now trying to replicate its earlier success with ‘break time essentials.’ This decision comes at a strategic time when its larger rivals such as Zomato, Swiggy and Ola are all exploring the 10-minute food delivery.
Zepto currently provides free delivery on orders of more than Rs. 99. A quick look around of the app shows that this Mumbai-headquartered startup has partnered with restaurants such as Blue Tokai Coffee, Chaayos, Gurukripa snacks and Sassy Teaspoon. Some of the items being delivered in 10 minutes are tea, croissants, samosas and coffee.
Aadit Palicha, co-founder of Zepto, said that they launched the pilot a couple weeks ago, and they have seen an incredible response from customers. He added that they are going to continue tweaking the model for some time so that they can perfect the customer experience and unit economics before scaling.
“Let me be clear – we are not doing food delivery. This is a Café format, with ready-to-drink coffee, chai, and packaged snacks (like biscuits and sandwiches). We don’t want to get distracted from our core business by building a complex supply chain for food delivery, where it’s difficult to control quality.” He also added that the core of Zepto’s business is going to remain grocery delivery and is not going to move away from that.
Other 10-minute food delivery services
Earlier the food delivery company Zomato has said that they will be able to deliver biryani, momos, bread omelette, poha, coffee, tea, and also instant noodles in ten minutes. Ola is also offering items like pizza and rolls in 10 minutes in Bengaluru through its quick commerce service, Ola Dash.
Zepto was founded in late 2020 and launched services from April 2021. It was started by two 19-year-olds Aadit Palicha and Kaivalya Vohra, who dropped out of their computer science engineering program at Stanford University. Both of the founders were brought up in Dubai and were from families with a background in business, they dipped into ventures early on. While they were still in school they founded their first venture GoPool, a ride pooling app which was later acquired by a Dubai-based firm.
In the last fundraising round, Zepto raised $100 million. The round was led by YC Continuity at a valuation of $570 million, just within months of raising $60 million in its first institutional round. Nilam Ganenthiran, the President of Instacart, and Ravi Inukonda, a senior executive at DoorDash, also took part in the round.