![]() ![]() E-grocery hardly takes a 3% space in this space. They are mostly “Oops, did I forget something?” purchases.Ībout 80% of grocery purchases are done through Kirana stores in India. The number of orders coming to Zepto and other quick commerce apps clearly indicate impulse purchase. However, retail stores will still be relevant, (at least in the coming decade) due to the following reasons:Ĭustomers prefer monthly or weekly bulk purchases. There is no doubt that Zepto will put pressure on retailers to compete for their position. Zepto Success Story Will Make Retail Stores Relevant In small towns, people may not even care if they receive their delivery a day later instead of the same day. Quick commerce may not succeed in smaller cities and towns as the customer demands and reviews drive their business in metro cities are not the same in smaller cities. Another interesting insight suggests that senior citizens and pregnant mothers will reap the benefit of Zepto’s 10 minute delivery. ![]() Furthermore, the discounts offered in the start are very lucrative for some users. Zepto is targeting users who value time over money. This would add up to a healthy ₹18000-₹24000, which turns out to be a lucrative job opportunity for blue collar workers. So if we settle for ₹30-₹70 delivery fees per order, and estimate that the delivery partner gets a good 70% of the delivery fee. This would add up to a total of 30 deliveries per day, considering the agent works a 10 hour shift. So, if you do a little maths, you’ll deduce that each delivery partner may be able to make 3 deliveries within an hour (approximately). There is one dark store established in that cluster. One delivery partner only serves a 2 km area (cluster). Zepto divides every city into clusters/zones. Let’s see how Zepto makes 10 minutes delivery a reality. The success of Zepto won’t be possible without great help from delivery partners. That would generate roughly ₹20-₹50 commision on every order! Now add whitelabeled products (Zepto’s own grocery product line) and there is a lot of profit that can be earned. ![]() As soon as early users start trusting Zepto, the delivery fee could go up.Ī lot of consolidation will happen and the basket size will shoot. The average delivery sizes range between ₹100-₹400. The margin over each product ranges between 7-22% depending on the product. This helps them control wastage (especially the perishable grocery products) as they are able to predict demand on the platform. Zepto uses dark stores, meaning that the supply chain, and the stock is under their control. Let’s try to understand the various aspects involved. Zepto could emerge as a unicorn because of its innovative business model. How Zepto Success Story Helped All Involved
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