In a move that signals a significant shift in India’s rapidly evolving e-commerce landscape, Zepto is expanding beyond its 10-minute delivery promise to embrace planned grocery orders. This strategic pivot, which mirrors the successful approach of industry veteran BigBasket, marks a turning point not just for Zepto but potentially for the entire quick commerce sector in India.
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How Zepto Grocery Delivery is Evolving Beyond 10-Minute Deliveries
Founded in 2021, Zepto quickly made a name for itself by promising grocery deliveries in just 10 minutes. The company’s lightning-fast service captured the imagination of urban consumers seeking instant gratification and emergency supplies. With its distinctive purple branding and relentless focus on speed, Zepto became synonymous with the quick commerce revolution in India.
But now, the company is writing a new chapter in its growth story.
“We’re expanding our offerings to include planned deliveries for customers who want to do their weekly or monthly shopping with us,” a Zepto spokesperson explained in a recent statement. This expansion doesn’t mean Zepto is abandoning its quick delivery roots—rather, it’s adding a complementary service to capture a different segment of consumer demand.
The quick commerce industry in India has been experiencing explosive growth, with a staggering 75-100% year-on-year increase. This rapid expansion has attracted major players and significant investment, but it has also raised questions about long-term sustainability. With monthly burn rates across the industry reaching ₹1,300-1,500 crore, companies are under pressure to find business models that can eventually turn a profit.
Zepto’s move suggests that quick commerce alone might not be enough to build a sustainable business in the long run.
The Strategic Shift to Planned Grocery Orders: Higher Value, Different Economics
By introducing planned grocery orders, Zepto aims to capture a larger share of household bulk buyers. The economics of this move are compelling: while quick commerce orders typically average ₹300-400, planned purchases can reach ₹600-700 or even higher.
In fact, data suggests that planned purchases typically have an average order value (AOV) of ₹2000, compared to just ₹200 for quick commerce orders. This tenfold increase represents a potential game-changer for Zepto’s revenue model.
There is, however, a trade-off. The shift towards planned grocery orders could initially reduce Zepto’s EBITDA margin from 6% to 3%. But the substantially higher order values could lead to better unit economics in the long run, especially as the company achieves greater scale and operational efficiency.
Let’s break down what this means in practical terms:
- Before: 1,000 daily orders × ₹300 AOV = ₹300,000 daily revenue
- After: 800 daily orders × ₹700 AOV = ₹560,000 daily revenue
That’s an 87% increase in daily revenue, even with fewer total orders. The math makes the strategy’s appeal clear, even with the initial margin compression.
BigBasket vs Zepto: Convergence of Business Models in Online Grocery
The traditional BigBasket vs Zepto comparison highlighted their different approaches, but this new strategy suggests a convergence of business models. BigBasket, founded in 2011, has long focused on planned purchases with AOVs of ₹1500-₹2000. Its business model was built around the idea that consumers would plan their grocery shopping in advance, placing larger orders less frequently.
Zepto, on the other hand, emerged as part of the quick commerce wave, focusing on immediate needs and impulse purchases. But now, these distinct approaches are beginning to overlap.
“What we’re seeing is a maturation of the online grocery market in India,” says Karan Mehrotra, a retail analyst. “Companies are realizing that different consumer needs require different fulfillment models, and the most successful players will be those who can serve multiple need states effectively.”
When analyzing BigBasket vs Zepto strategies, we can see that both are now targeting the same customer segment of household bulk buyers. This puts Zepto in direct competition with BigBasket, which has spent years refining its approach to planned grocery deliveries.
The question now is whether Zepto can successfully execute this dual strategy, maintaining its edge in quick commerce while building credibility in planned deliveries.
Targeting Bulk Grocery Buying: A New Frontier for Quick Commerce Players
Consumer trends indicate a growing preference for bulk grocery buying among Indian households. This shift is driven by several factors:
- Value consciousness: Buying in bulk often offers better value per unit
- Convenience: Stocking up reduces the need for frequent shopping trips
- Pandemic habits: COVID-19 accelerated the trend toward fewer, larger shopping trips
- Rising disposable incomes: More households can afford to make larger purchases at once
Zepto’s new strategy directly addresses the bulk grocery buying segment that has traditionally been BigBasket’s stronghold. This move acknowledges that while quick commerce serves an important need, it captures only a portion of the overall grocery spending of Indian households.
“The average Indian household spends about 30-40% of its income on groceries and essentials,” notes consumer behavior researcher Priya Sharma. “Quick commerce typically captures the urgent, top-up purchases, but planned buying represents the bulk of household spending.”
By expanding into planned deliveries, Zepto is positioning itself to capture a larger share of each household’s total grocery budget—a smart move in a market where customer acquisition costs are high and retention is key to profitability.
The Changing Landscape of Online Grocery Shopping in India
The online grocery shopping landscape in India is rapidly evolving, with companies adapting their strategies to meet diverse consumer needs. What started as a niche service for urban professionals has expanded into a mainstream shopping channel for millions of Indians.
Several factors are driving this evolution:
- Increasing smartphone penetration: More Indians than ever have access to online shopping platforms
- Growing comfort with digital payments: UPI and other payment methods have simplified online transactions
- Expanding delivery networks: Companies can now reach more neighborhoods and cities
- Changing consumer expectations: Shoppers now expect both speed and selection
As online grocery shopping continues to grow in India, companies are finding that a one-size-fits-all approach may not be sustainable. The market is segmenting based on different shopping occasions and consumer needs.
“We’re seeing a multi-modal future for online grocery in India,” explains e-commerce consultant Rahul Jain. “Quick commerce for immediate needs, scheduled deliveries for regular shopping, and specialized services for specific categories like fresh produce or premium products.”
Zepto’s expansion into planned deliveries reflects this broader trend toward diversification and specialization in the market.
Quick Commerce Profitability: Challenges and Solutions in the Indian Market
The question of quick commerce profitability has been a concern with monthly burn rates reaching ₹1,300-1,500 crore across the industry. The high costs of maintaining dark stores in prime locations, ensuring adequate inventory, and managing a fleet of delivery personnel have put pressure on companies to find sustainable business models.
Zepto’s strategic shift addresses quick commerce profitability concerns by targeting higher-value orders despite lower initial margins. This approach acknowledges that while quick commerce has captured investor imagination and consumer interest, the path to profitability may require a more diversified approach.
Several challenges remain for companies in this space:
- Last-mile delivery costs: These remain stubbornly high, especially for low-value orders
- Inventory management: Balancing availability with minimizing waste is complex
- Customer retention: Loyalty is still developing in this relatively new category
- Competition: Multiple well-funded players are fighting for market share
By adding planned deliveries to its offering, Zepto is creating a potential solution to some of these challenges. Higher-value orders improve the economics of last-mile delivery, while a more predictable ordering pattern can help with inventory planning.
The Future of Quick Commerce: Hybrid Models and Ecosystem Play
Zepto’s pivot suggests that the future of quick commerce may lie in hybrid models that combine the convenience of rapid delivery with the economics of planned purchases. This evolution mirrors what we’ve seen in other retail categories, where pure-play models eventually give way to more nuanced approaches that address different customer needs.
Looking ahead, we can expect:
- Further convergence of models: Other quick commerce players may follow Zepto’s lead in adding planned delivery options
- Technology investments: Companies will invest in AI and machine learning to optimize inventory and logistics for hybrid models
- Customer experience focus: The battle will shift from pure speed to overall experience quality
- Ecosystem development: Grocery may become part of broader service offerings that include meals, pharmacy, and other essentials
The evolution of Zepto grocery delivery services reflects the maturing market and changing consumer preferences. As the company expands beyond its initial promise of 10-minute deliveries, it’s setting the stage for what could be a more sustainable and profitable approach to online grocery in India.
Conclusion: A Pivotal Moment for Indian Quick Commerce
Zepto’s strategic pivot represents a transformative moment for the quick commerce industry in India. By blending the speed of quick commerce with the higher values of planned purchases, Zepto is charting a course that could redefine the economics of online grocery delivery.
This move acknowledges a fundamental truth about consumer behavior: people shop differently for different occasions. Sometimes we need a single ingredient right away; other times, we’re stocking up for the week. A successful online grocery platform needs to address both scenarios.
For consumers, this evolution promises more options and potentially better service as companies refine their offerings. For the industry, it signals a maturation beyond the initial growth-at-all-costs phase toward more sustainable business models.
As the dust settles on this strategic shift, one thing is clear: the lines between different models of online grocery shopping are blurring, and the winners will be those who can effectively serve customers across multiple shopping missions. Zepto’s bold move puts it at the forefront of this evolution, but the race is far from over.
What do you think about Zepto’s strategic shift? Will it succeed in capturing the planned grocery market while maintaining its quick commerce edge? Share your thoughts in the comments below.
