Quick commerce platform Zepto recently announced its plans to launch a standalone mobile application for its food delivery vertical, Zepto Cafe, launching a week after its announcement. The app will be available for download on both android and iOS platforms, while consumers will still have the option to order Zepto Cafe products through the primary Zepto app.
Aadit Palicha, Co-Founder and CEO, Zepto explained the reason behind the move. He stated, “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.”
Currently handling 30,000 orders daily, Zepto Cafe has adopted a fast-launch strategy. Palicha noted, “The team is shipping a Minimum Viable Product (MVP) 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 growth plan, Zepto is expanding over 100 Zepto Cafe outlets across India’s six largest cities, positioning itself as a strong player in the evolving quick commerce landscape.
Launched in April 2022, Zepto Cafe has already achieved an Annualised Revenue Runrate (ARR) of Rs 160 crore. The company projects this to grow to Rs 1,000 crore by 2026, fueled by the standalone app and outlet expansions. Meanwhile, Zepto itself is gearing up for an IPO in 2025, reflecting its ambitions and confidence in capturing market leadership within the quick commerce ecosystem.
The announcement comes at a time of growing competition. Earlier this week, Amazon launched a pilot quick commerce service in Bengaluru, intensifying the battle in the segment. Competitors like Zomato, through Blinkit, operate separate apps for different services, while Swiggy integrates all offerings, including food delivery and quick commerce, into a single app. Zepto’s decision to introduce a standalone Zepto Cafe app combines the best of both strategies, offering a potential market advantage.
The quick commerce players are increasingly targeting the fast food delivery sector to boost average order values. Swiggy’s Bolt now accounts for 5 per cent of its food delivery orders, while Zomato has introduced its Everyday vertical in select cities.
