Online food delivery has grown more practical and popular in this age of pandemics. For top comparable applications like Zepto, the quickness of delivery is considered the USP for such online delivery apps. Kaivalya Vohra and Aadit Palicha, both 19 years old, launched Zepto 2021, a 10-minute grocery delivery service. Both of these gifted GenZ students dropped out of Stanford University, where they were pursuing scientific degrees.
After stepping out of university, they decided to create Zepto, a ten-minute shopping delivery app. Groceries are delivered to your home in 10 minutes through Zepto’s mini-warehouses and a network of dark businesses.
Groceries are being delivered quicker than ever before.
Companies are working to reduce the time it takes to deliver groceries in the delivery business. Companies from all around the globe, such as Weezy, Jokr, Gorillas, Grofers, Swiggy Instamart, and others, are striving to reduce delivery time and deliver goods in as little as 10-15 minutes.
With the aid of app development services, Zepto has reduced the time it takes to deliver groceries to only 10 minutes. According to reports, rapid commerce is the next major thing the supermarket delivery sector is hoping to capitalise on. Startups like Zepto are among the industry’s youthful leaders.
Zepto Grocery Delivery App provides quick service.
Companies are capitalising on the no-fridge notion by delivering groceries in minutes using grocery delivery apps. Companies are establishing USPs in the form of lightning-fast delivery, which lets them unlock the potential for higher profit margins.
Despite the destruction wrought by the epidemic, many food stores have rebuilt themselves by concentrating more on delivery and leveraging technology. SMBs and startups have risen to the occasion and taken advantage of the chances for innovation and expansion.
What is the basis of the Zepto grocery delivery business model?
Dark shops have long been prevalent in Indian entertainment, even though the format has yet to be completely explored. Because dark shop grocery delivery is more dependable, most delivery business services have extended to include it.
A dark shop is a tiny warehouse located near a residential area. Consumers are not allowed to visit the area; instead, they must purchase items online and have them delivered to their homes. Zepto has entered a zone of possible competition, along with a couple of the largest delivery businesses, all competing for a piece of the pie.
Swiggy, Grover, and Dunzo are some of the top comparable apps to zepto that offer to deliver goods within 15-30 minutes. Now Zepto has entered the fray, promising to deliver goods in as little as 10 minutes.
The challenges of 10-minute grocery delivery
- One of the biggest challenges is the high costs involved in running such a business. These costs include things like warehousing, inventory management, last-mile delivery, and marketing.
- Another challenge is customer retention – it can be difficult to keep customers coming back when there are so many other options available.
- And finally, one of the biggest challenges is ensuring that orders are fulfilled quickly and efficiently.
- There’s a lot of pressure to deliver orders within 10 minutes, and any delays can lead to unhappy customers.
How can the challenges of 10-minute grocery delivery be overcome?
There are a few ways to overcome these challenges.
One way is to invest in automation and technology to streamline the fulfillment process.
For example, using AI and machine learning to optimize inventory and delivery routes can help speed up the fulfillment process.
Another way is to focus on creating a great customer experience. This includes offering perks like discounts and loyalty programs, as well as providing excellent customer service.
Finally, it’s important to be transparent with customers about the challenges and limitations of a 10-minute delivery model, so they know what to expect.
Key factors to consider when starting a 10-minute grocery delivery business
Here are some of the key factors to consider
Understanding the customer
Know who your target customers are and what they expect from a 10-minute delivery service.
Location
Choose a location that’s easily accessible and has a high density of potential customers.
Last-mile delivery
Ensure you have a reliable and efficient last-mile delivery solution in place.
Inventory management
Make sure you have the right inventory in place to meet demand.
Technology
Invest in technology that can help you streamline the fulfillment process.
Case studies of successful 10-minute grocery delivery businesses
Zepto
Zepto is a 10-minute grocery delivery service that was founded in 2021 by two 19-year-old Stanford dropouts. The company operates in over 10 cities in India and has over 1,000 employees. Zepto has raised over $500 million in funding from investors such as Sequoia Capital, Accel Partners, and Y Combinator.
Zepto’s success is attributed to its focus on convenience and speed, utilizing a network of dark stores to deliver groceries in less than 10 minutes.
Zepto provides a comprehensive range of products, including fresh fruits, vegetables, meat, seafood, dairy, and household items, making it a convenient and efficient one-stop shop.
Blinkit
Blinkit (formerly known as Grofers) is another successful 10-minute grocery delivery service in India. It was founded in 2015 and operates in over 20 cities in India. The company has over 10,000 employees and has raised over $1 billion in funding from investors such as SoftBank, Tiger Global Management, and Sequoia Capital.
Blinkit’s success is attributed to its emphasis on customer satisfaction and convenience, offering a diverse range of products and 10-minute delivery, same-day delivery, and scheduled delivery.
In 2022, Blinkit was acquired by Zomato, an online food delivery platform. This acquisition is expected to help Blinkit expand its reach and market share.
Swiggy Instamart
Swiggy Instamart is the 10-minute grocery delivery service of Swiggy, India’s largest online food delivery platform.
It was launched in 2021 and operates in over 10 cities in India. Its success is attributed to its integration with Swiggy’s existing food delivery platform, enabling customers to order groceries and food from the same app.
In addition to the three companies mentioned above, there are several other successful 10-minute grocery delivery businesses around the world. These businesses are all focused on providing customers with a convenient and fast way to get their groceries.
How the technology behind 10-minute grocery delivery works
- A customer places an order through the mobile app.
- The order is sent to the nearest dark store.
- A picker in the dark store picks and packs the order.
- The order is assigned to a rider through the delivery management software.
- The rider picks up the order from the dark store and delivers it to the customer.
- The customer receives a notification when the order is delivered.
10-minute grocery delivery is a complex and challenging business model. However, the technology that powers it is constantly evolving and improving. This makes it possible for 10-minute grocery delivery businesses to offer customers a convenient and fast way to get groceries.
What distinguishes Zepto from other delivery apps?
Palicha, the creator of Zepto, argues that geographical data and location intelligence has significantly improved the network of their software. Traffic dynamics, topography, weather, road patterns, demographics, real estate values, and last-mile supply are all issues to consider.
The cool rooms and dark shops of Zepto, a popular 10-minute grocery delivery app, were custom-designed to suit the needs for smooth navigation, allowing packers to work quickly and pack things in a certain sequence.
The packers use tablets to figure out where each item is stored and how to acquire the best path to pick them up. The app’s deadline is 10-minute deliveries; however, the real delivery time may vary from one consumer to the next.
What is Zepto’s role in the world?
According to the creator, the app’s demand curve for orders is more or less flat throughout the day. There aren’t any peaks or troughs as with food delivery when you can observe a rush during peak hours for breakfast, lunch, or supper.
This allows the organisation to monitor trends as well as distribute riders. The corporation has operations planning systems in place as well as detailed sales to estimate the hour when demand is typically strong, and this is how additional planning is carried out.
The advantages of launching a food delivery company
Starting a food delivery service is a great way to give back to your town by supporting small businesses and giving people more alternatives for eating at home.
Restaurants may benefit from food delivery services to broaden their reach beyond foot traffic. They may also assist restaurateurs who no longer have a physical location where clients can dine, as well as those who want to validate a proof-of-concept for a new restaurant concept.
You’ll be up against established competitors like Uber Eats, GrubHub, and DoorDash in this sector. Your local ties and relationships, on the other hand, may provide you with a competitive edge in terms of commission and delivery rates. (According to a WIRED story, many restaurant owners are grappling with current service fees levied by meal delivery businesses.)
How to Start a Food Delivery Business in 4 Easy Steps
So, what do you need to start a home-based food or grocery delivery business? Here are some simple and straight forward steps to get you started:
1. Determine the amount of capital required to establish a company.
The two most important phases in starting a food delivery company are writing a business plan and obtaining money.
Consider your desired consumer base, your starting and continuing expenses, and how long it will take to become profitable while drafting a business plan.
This is also an excellent opportunity to choose a company name and design an initial marketing strategy.
The price of starting a meal delivery service may vary from $3,000 to $25,000. The following items will be required as part of your investment:
A place to work
The expenses of running a company vary significantly depending on where it is situated. Many entrepreneurs prefer to start their business from home, which may save money.
Technology costs
A computer, phone system, internet connectivity, and potentially a printer or scanner are required by most small enterprises. You can use your own gadgets initially, but when you’ve covered your first beginning expenditures, you’ll want to invest in technology.
Business license and insurance
It is essential to ensure that your company is properly insured. Liability insurance is required for most small enterprises, and commercial auto insurance is required for food delivery operations. Worker’s compensation insurance is required in most states as soon as an employee is hired.
Materials for marketing and a website
To obtain clients from nearby eateries and the people you aim to serve with meal delivery, you’ll need to market your company. Consider using branded napkins, cutlery, and other items to provide customers with a consistent experience.
Take the time to create a marketing strategy that incorporates social media and a website, as well as traditional strategies like fliers and advertising. Review sites like Yelp and Facebook may help you build confidence in your company.
Vehicles and equipment intended for delivery
Most delivery companies offer transportation for their drivers, as well as food service bags and/or food trays meant to keep food fresh and warm. This is where commercial car service comes in; your personal vehicle coverage will almost certainly not cover business-related accidents or other claims.
2. Conduct market research on your intended audience.
Any firm that understands its target market has a better chance of succeeding. Examine the environment in which your company will function – will you be surrounded by a university, a business park, or suburban families?
The demographics of your target market may help you choose a name for your company, a marketing approach, and the meals you serve.
You may perform research on your own by going into the community and asking/observing what people need, or you can conduct research with local business bureaus to determine where there could be a demand in your neighborhood.
3. Create a menu and services for food delivery.
You may start planning your menu and service offerings after you know who your target market is. Whether you’re dealing with a meal-prep service or local eateries in your area, this will vary.
Will you concentrate on fast meals, convenient snacks, lunch, dinner, family dinners, or singles meals? As you get started with your delivery business, having a distinct theme will be beneficial.
If you want to work with a local restaurant, approach them carefully with your research and business strategy.
4. Take care of your legal and financial obligations
Every small company needs a few things
Create a legal entity: Creating a legal entity might help you secure your personal assets. You may pick from a variety of options, including an LLC, Corporation, or DBA.
To register for taxes, go to the IRS website and fill out an application for an employer identification number. Before you open your doors, double-check your state and federal tax regulations to ensure you’ve met them.
Open a business bank account
You may secure your assets by obtaining a separate banking and credit line for your company.
It also makes tax preparation simpler. Also, build up an accounting system to better understand your money and be prepared to submit taxes every year.
Check with local, state, and federal small business authorities to ensure you have all of the licences and licences needed to operate a meal delivery service in your area.
How can you safeguard your food delivery company from dangers?
Once you’ve decided to start a meal delivery service, you’ll need to be aware of the potential hazards. Many of the most frequent delivery-related incidents are covered by small company insurance.
General liability insurance for food delivery firms, for example, may cover
Compensation for third-party injuries and medical expenses
If you are proven accountable for delivering food that causes a client to get unwell and they sue you for medical charges, this may reimburse your fees. You would also be financially protected if you left a food delivery outside of a house and someone was harmed as a result of tripping over the item.
Property damage to third parties
General liability insurance also includes coverage for property that you do not own. For instance, if a delivery worker breaks a sprinkler outside a client’s house, causing considerable water damage, the consumer may choose to sue you. The accompanying legal expenses would be covered by your liability insurance up to the policy level.
Injuries to people and businesses
Invasion of privacy, libel, and slander are examples of personal and advertising harm covered by general liability insurance. If you post a customer’s picture on social media without their consent, they may sue you for invasion of privacy.
Commercial vehicle insurance, which may cover you while driving for business, and workers’ compensation insurance, which is needed in most states as soon as you hire your first employee, are two other plans to consider.
