According to the description on Google’s app store, the new platform will offer snacks, meals, desserts and beverages, which will be delivered in 10 minutes. The development comes at a time when food delivery and quick commerce platforms are extending the ultra-fast delivery model to food.
In 2022, Zomato, through its primary offering, had experimented with 10-minute delivery of food in Gurugram but later discontinued the pilot programme. It later launched Zomato Everyday which offers meals prepared by home cooks from centralised kitchens in relatively shorter timeframes.
Swiggy already runs its 10-minute food delivery offering under Bolt while Zepto operates Cafe, which are being scaled rapidly.
The newly listed Swiggy announced earlier this month that it has expanded Bolt to over 400 cities which already makes up 5% of its total food deliveries while Zepto is adding over 100 cafe outlets monthly and is set to launch a standalone app for its 10-minute food delivery service next week. According to Zepto’s chief executive Aadit Palicha, the new service is clocking over 30,000 orders per day. Zepto Cafe offers items like tea, coffee, pastries and savoury snacks.
ET had earlier reported that Zepto is scaling its cafe business with the aim of hitting an annualised revenue run rate (ARR) of Rs 1,000 crore within the next financial year.
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Similarly, Bengaluru-based 10-minute food-delivery startup Swish, which raised $2 million recently, covers a variety of categories including indulgences, snacks, beverages, and meals, operates several cloud kitchens in Bengaluru’s HSR Layout and Bellandur areas and is expanding to Koramangala and Sarjapur.While quick commerce is a rapidly growing business for Zomato, food delivery still continues to contribute the most to the company’s revenue and bottomline.
In July-September, Zomato reported operating revenue of Rs 4,799 crore, up 68% year-on-year (YoY), while its net profit came in at Rs 176 crore, up 389% from Rs 36 crore a year ago.
The company’s food delivery vertical reported a gross order value (GOV) of Rs 9,690 crore for the September quarter, while Blinkit reported Rs 6,132 crore in GOV.
Last month, Zomato closed a qualified institutional placement (QIP) of Rs 8,500 crore mainly from domestic investors. It had said that it is looking to deploy the proceeds from the capital raise towards scaling its quick commerce business.
“Nobody in the world has so far delivered hot and fresh food in under 10 minutes at scale, and we were eager to be the first to create this category, globally!” CEO Deepinder Goyal wrote in a blog post in 2022 when Zomato first launched the service. The service was offered through Zomato’s ‘finishing stations’, which stocked 20-30 best-selling dishes from various restaurants based on demand predictability and hyperlocal preferences.
