During the pandemic time, online grocery delivery got immense popularity. The main operator of the online grocery delivery apps and business is changing customer behavior.
These days, customers are likely to purchase online. This has resulted in alluring more delivery businesses like Zepto to start their delivery service and serve customers’ growing needs with the fastest delivery. If you are searching to dive into the market, then you must know about the Zepto business model and it will be helpful for you.
In terms of financial commitments, involvement, and attention, the grocery delivery business is growing. The online grocery market was worthed at 2.9 billion in 2020.
Between 2021 and 2028, the market is projected to grow at 37.1% of the CAGR. due to customers changing lifestyles, the tech-savvy generation shifting shopping habits, and growing urbanization, the online grocery market has gained huge traction over the years.
Zepto was launched in April 2021 and has gained huge popularity. Let us discuss what is Zepto, how it works, and how to make money.
What is Zepto?
Zepto is a quickly-growing grocery delivery platform in India. It promises to deliver groceries to your doorsteps within 10 minutes. Other companies offer delivery within 30 minutes. But Zepto delivers the daily essentials within 10 minutes.
Zepto Business model: Dark Store model
By 2025, the Indian e-grocery market is predicted to reach around $24 billion. By the same period, online grocery penetration is forecasted to get 3 to 5%, which was less than 1% in recent times. Lower-tier consumption, rising income, eCommerce penetration, young population demand, and increasing affluence are long-term structural drivers. A couple of teenagers developed the Zepto business model.
The Dark Store might appear threatening. During Covid-19, the undercut clever strategies that kept some retail establishments afloat. It is the distribution centers that are not accessible to the public. The small warehouses fill orders exactly and give consumers access to resources and choices, adding same-day delivery, in-store pickup, and online shopping.
The ability to produce more than 2500 items in 10 minutes regularly is the instant success of Zepto. It is at the center of all the grocery business does; they have retained customer loyalty so that they have increased so quickly.
By using the Dark Store concept, Zepto delivers the grocery within 10 minutes. The grocery delivery sector is meeting great profit and startups like Zepto are the quickest growing sector in the delivery sector.
Benefits of Zepto business model:
During a pandemic, the Zepto founders had an idea of Zepto. while increasing the demand for grocery and food delivery services, there was a vacuum for fast delivery, this knowledge gave sparks to the Zepto business model. It is very useful, due to the unexpected pandemic.
Faster delivery and enhanced distribution:
Using the Dark Store business model, Zepto fulfills multiple orders quickly. Micro and cold warehouses offer various distribution options, physically delivering groceries closer to a market group. The grocery delivery platform controls the distribution.
Raise customer reach:
The cloud makes distribution hubs accessible to customers. They accept round-the-clock services online. customers are attracted to these grocery delivery platforms and use the services as a result.
Contactless shopping has affected businesses to opt for a “dark store” approach. without interacting with others or moving to a physical store, cloud kitchens or dark stores allow customers to shop for meals and groceries. They list down the things they want and deliver them within time.
Enhanced Product Assortment and Inventory:
Dark Stores offer inventory control, manage great order quantities, and have no customers. Zepto’s AI-powered platform allows inventory stock tracking and product assortment.
How Zepto works?
Zepto has 100 places called micro fulfillment centers or dark stores that lie in higher-demand neighborhoods. Using modern technology, such types of stores perform tasks like the placement of products, mapping delivery routes to avoid heavy traffic congestion and the company finalizes the store’s location.
This company delivers almost 2500 items, including fresh produce, personal care items, cooking necessities, home cleaning items, and snacks and beverages. The founders of Zepto bring execution to their q-commerce Zepto business model like DoorDash.
The startup look forward to fulfilling the needs of over 1,00,000 new customers. Customer get the delivery service at their doorstep by follow the below steps.
- To check the product list, customers want to download the app or visit the website.
- Once registered and logged in, they are allowed to purchase and place the order.
- Dark stores nearby receive order notifications related to the customers.
- The store pack the items and the delivery partner gets them from the store.
- The delivery man delivers to the doorstep of the customers.
- Customers can make the payment and give feedback.
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Future plan of Zepto:
Zepto is looking to expand its customer base, hire more staff to ensure smooth operation, and open dark stores. In the future, Zepto is looking to offer its service to more countries. This company is planning to cover about 100 pin codes. The fastest delivery is a fresh idea. The delivery platform brings fast delivery to customers through the dark store concept.
Unique Selling features of Zepto
The business strategy of Zepto is to provide quick services to all its users. In order to differentiate from their competitors they offer many marketing elements. One of the best elements of Zepto is its free shipping and this makes them stand unique among their competitors like Amazon Fresh, Instacart. This features attracts more customers. Zepto is all about fast delivery, they have a record of 8 minutes and 47 seconds maiden delivery time.
Frequently asked Questions
What does Zepto do?
- Zepto is an grocery delivery service app based in Mumbai. Delivers groceries within 10 minutes.
How many users are there in Zepto?
- Over 10 million people use Zepto as their grocery delivery app.
Who is the CEO of Zepto?
- The founder of Zepto is Aadit Palicha
What is the Tagline of Zepto?
- Grocery deliveries in 10 minutes. Ordered grocery items will be delivered in 10 minutes or less than.
The grocery delivery space was disrupted by the fastest delivery services. delivery giants like Swiggy, Instamart, and Bigbasket are planning to complete deliveries within 15 minutes by the end of the year. Zepto entered the market delivery area at the right time and got great success.
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