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Zepto to Launch Dedicated Mobile App for Zepto Cafe

• ByStartupStory     |    December 12, 2024

Quick commerce platform Zepto is set to launch a standalone mobile application for its food delivery vertical, Zepto Cafe, next week. The app will be available for download on both Android and iOS platforms, the company announced on Wednesday.

Zepto Co-founder and CEO Aadit Palicha emphasized that consumers will still have the option to order Zepto Cafe products via the primary Zepto app.

“There is a significant consumer top-of-mind advantage to a separate app, and we are seeing the economics work standalone. So, a standalone app makes sense,” said Palicha.

Zepto Cafe is currently handling approximately 30,000 orders daily. Sharing insights on the launch approach, Palicha added, “The team is shipping an MVP (minimum viable product) and iterating quickly, so it may not be perfect on Day 1, but it’s worth it to launch fast.”

As part of its aggressive expansion, Zepto is rolling out over 100 Zepto Cafe outlets across India’s six largest cities.

The announcement comes amid intensifying competition in the quick commerce sector, with established e-commerce players entering the fray. Earlier this week, Amazon launched a pilot of its quick commerce platform in Bengaluru, signaling its entry into the space.

The quick commerce industry currently employs varied strategies regarding service offerings. Competitor Zomato, which owns Blinkit, operates separate apps for its food delivery, ticketing, and quick commerce services. In contrast, Swiggy integrates its food delivery, quick commerce, and other services into a single app.

Zepto’s decision to create a standalone app for Zepto Cafe merges both approaches, potentially providing a distinct advantage in the market.

Quick commerce companies are increasingly venturing into the fast food delivery sector to boost gross and average order values. Swiggy recently introduced Bolt, which already accounts for 5% of its food delivery orders, while Zomato has rolled out its Everyday vertical in select cities.

Another player in the segment, Swish, recently raised $2 million in funding from investors, including Accel, highlighting the space’s growing appeal.

Zepto Cafe, launched in April 2022, has achieved an annualized revenue run rate (ARR) of ₹160 crore. The company projects this figure to grow to ₹1,000 crore by 2026. Zepto itself is gearing up for an IPO in 2025, a testament to its ambition and market confidence.

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