Quick commerce platform Zepto on Wednesday said it will launch a separate mobile application for its food delivery unit, Zepto Cafe, next week. The app will be available for both Android and iOS users.
Co-founder and CEO Aadit Palicha said consumers will still be able to order Cafe products via main 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,” he said.
Palicha said Zepto Cafe is witnessing around 30,000 order every day. “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,” Palicha wrote on Wednesday.
The company is launching over 100 Cafes across top six cities.
The quick commerce space is witnessing a tough fight with the entry of established e-commerce giants in the race.
Amazon on Tuesday became the latest entrant with the launch of a pilot of its quick commerce platform in Bengaluru.
Currently, q-commerce companies follow two separate models in terms of entry points. Zomato, which owns Blinkit, has separate apps for its food delivery, ticketing and quick commerce businesses. Swiggy, on the other hand, has the same app for its food delivery, q-commerce and out-of-home verticals.
With this, Zepto seems to have merged both the methods.
The development also comes at a time when quick commerce companies are expanding into quick food delivery business to improve gross and average order values.
Swiggy recently announced the launch of Bolt, which already accounts for 5% of its total food delivery orders.
Zomato is also trying to target quick food delivery with its Everyday vertical in select locations.
Besides, rapid food delivery firm Swish recently raised $2 million from investors, including Accel, making it a big player in the space.
Zepto, which is aiming for an IPO in 2025, had launched Zepto Cafe in April 2022. Currently, it is clocking an annualised revenue run rate (ARR) of Rs 160 crore and is projected to touch Rs 1,000 crore in ARR by 2026.
