10-minute delivery is making Zepto, Swiggy, and Blinkit disrupt themselves
Jan 13, 2025
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In 2024, 10-minute delivery services took India by storm, leaving traditional food delivery times in the dust. Companies like Zepto, Swiggy, and Blinkit are racing to innovate, with Blinkit's launch of 'Bistro' and Zepto's 'Zepto Cafe' showcasing fierce competition. As these brands shift strategies to retain customers who demand faster service, the podcast delves into whether this trend is a necessary evolution or just consumer obsession. Explore the complexities of quick commerce and the pressures driving these changes.
The quick commerce sector is evolving rapidly, with companies like Zomato, Zepto, and Swiggy adapting delivery strategies to meet new consumer expectations for faster service.
Brand association is increasingly important in quick commerce, as customers shift their preferences toward specific platforms like Blinkit and Zepto, redefining traditional e-commerce dynamics.
Deep dives
The Surge of 10-Minute Delivery Services
The quick commerce sector in India is experiencing significant growth, particularly with the rise of 10-minute delivery services that have gained traction in 2024. Companies like Zomato and its subsidiary Blinkit, along with competitors like Zepto, have reported impressive annual growth rates and have successfully raised billions in funding during a time when other sectors have struggled. This shift highlights a changing consumer expectation, with many now perceiving 40-minute delivery services as unacceptably slow, prompting rapid adaptations in delivery strategies across the industry. As players in this market continue to innovate, they find themselves in a self-disruptive cycle, constantly reshaping their offerings to retain customer loyalty.
The Dynamics of Brand Association
Brand association is emerging as a critical factor in the competition among quick commerce companies, as they strive to capture consumer attention for specific product needs. Historically, companies like Flipkart and Amazon have developed strong emotional ties with consumers, but as 10-minute delivery services become the norm, this dynamic is shifting. Customers are now increasingly inclined to use Blinkit or Zepto for items they might have traditionally associated with other e-commerce platforms. This repositioning reflects the growing influence of quick commerce in altering consumer behavior and expectations, as companies seek to dominate the mental spaces of their users.
The Unbundling of the Kirana Store Model
Quick commerce is reshaping consumer purchasing habits, leading to an unbundling of the traditional Kirana store model by fostering distinct app preferences for different needs. Companies like Zepto and Blinkit are experimenting with separate applications for various offerings, such as 10-minute food delivery, to better align with consumer behaviors that have emerged in this fast-paced marketplace. By focusing on narrower use cases and specific customer needs, these companies aim to create strong associations that can drive repeat usage and higher customer retention. The move away from a one-size-fits-all approach signifies a bold strategy, allowing quick commerce firms to tap into more granular purchasing behaviors while redefining the customer experience.
1.
The Disruption of Quick Commerce: Navigating 10-Minute Deliveries
2024 was the year of the 10-minute delivery. We think we didn't need it but the likes of Zepto, Swiggy Instamart, and Blinkit proved us wrong. While other companies were struggling to find funding, these quick-commerce companies were raising billions of dollars and reporting double-digit, sometimes even triple-digit annual growth rates.
In December, Zomato’s quick-commerce subsidiary, Blinkit made a strategic move in the rapidly growing quick food delivery market space. It launched ‘Bistro’, a platform that will deliver food and beverages within 10 minutes. Interestingly, this was just a day after its competitor Zepto introduced the Zepto Cafe. Swiggy too already has a 10-minute food delivery service called Bolt, and unlike the others, it is inside their original app.
Is this just another indulgence or has quick commerce reached a point where players are so paranoid that they’re trying to hold on to customers who think that a food delivery that takes 40 minutes is too slow?
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Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.
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