The buzz of 10 minutes!
Dominos Pizza within 30min & now Grocery within 10 min or even in some cases 2–3min?🙌
This will totally be like a new experience for consumers to buy groceries…..The buzz of 10 min has a real value in the future. According to RedSeer, this market is expected to grow to $250 billion by 2024–2025 worldwide
Zepto — a startup is founded just 9 months ago in April 2021 by two Stanford dropouts, Aadit Palich and Kaivalya Vohra — has raised $60million in a funding round by Glade Brook capital at a $225 million valuation. And recently it raised $100 million in a funding round led by Y Combinator, doubling its valuation from earlier $225million to $570million.
It is intriguing to know that meaning of Zepto is a mathematical term that describes the business, a category that has become red hot in several parts of the world in recent quarters
Zepto’s 10-minute delivery Model -
Let’s have a look at how the model operates starting from the point a customer checks out from the app to the point of delivery.
As opposed to warehouses seen with other eCommerce sites such as Flipkart and amazon which are located on the outskirts of the city, Zepto has set up micro warehouses (also known as Dark stores) inside the city that only caters to demand within a specific region.
To understand more about Dark store, we will recommend watching this video by MoneyControl
When a customer checks out from the app, the nearest dark store receives the order and starts packaging which is done within 60 seconds. It is then handed over to the delivery agent who delivers it to the customer within 10 minutes.It is made possible by placing the frequently ordered items of the region at front in the dark store.
For its delivery partners, Zepto collaborates with Contractors and gig workers.
The time, location, demand patterns, are measured through the use of data trends and predictive analysis. Zepto uses AI technology to maintain the inventory.
Zepto is the new craze in the q commerce market, some consumers are just ordering from Zepto in order to see if the delivery is really within 10 min?
And to add to their surprises, Zepto has delivered some orders even within 2–3 minutes.
The q-commerce ( Quick commerce ) is an emerging industry, and big players are investing highly to make a name for themselves.
According to Bloomberg,
“The company faces stiff competition. Zepto will be taking on larger rivals such as SoftBank Group Corp.-backed Grofers, Google-backed Dunzo, and Swiggy (Instamart)while other startups such as Pickily are also crowding the scene. Grofers also promises 10-minute delivery times, while Dunzo pledges 19 minutes. In June, Swiggy closed a $1.25 billion funding round.”
Net Promoter Score (NPS)
NPS is the metric that measures customer loyalty towards the company and how likely are they to refer the company's products and services to others.
Vohra, who is CTO, said, “The data speaks for itself — once we started delivering in 10 minutes, our NPS (net promoter score) shot up and has constantly remained at around 85, with a 50% week-on-week user retention rate, which shows the incredibly strong customer love for our product.”
Swiggy has announced plans to make an investment of $ 700 million in its q- commerce vertical Instamart and it will be operational by January 2022. It also plans to make a network of dark stores in localities and deliver products in 15 minutes.
Blinkit (earlier Grofers) has temporarily shut down in certain areas where it was not able to deliver in 10 mins, with hopes of returning with an efficient system to deliver on its USP.
Other players include Tata neu super app, Frazzo which are working on the network of dark stores to compete in this newly emerging Industry.
Thankyou for spending your time and reading it , we hope it was worth reading.Will see you next time.😊
Till then consider checking out our previous blog on Licious Business Model