Zepto delivery service

[Chris Newman]

I bet most of the members living in India would have heard about Zepto.
Zepto's uniqueness is that it delivers from it's own network of cloud shops known as micro-warehouses.
Whereas Dunzo, etc delivers from various shops which are not their own retail storage facilities.
Zepto advertises 10 minutes delivery and according to their official website, they have a median delivery time of 8 minutes and 47 seconds.
Nowadays, I see more of Zepto's micro-warehouses popping up all around the major cities and in some towns across India.
So, Zepto is in an aggressive expansion mode now. Zepto has raised so far, a total funding of $361M. Zepto incurred a total loss of Indian Rupees Rs.390.4 crore in financial year 2022.
Considering that Blinkit (similar to Zepto), has majorly shut down services in areas where it cannot deliver groceries in under 10 minutes, do we think that Zepto will really disrupt the grocery delivery space and eventually make profits or is it going to be yet another startup that will indefinitely bleed investor's money and finally shutdown ?

 

[SohanPerves]

I bet most of the members living in India would have heard about Zepto.
Zepto's uniqueness is that it delivers from it's own network of cloud shops known as micro-warehouses.
Whereas Dunzo, etc delivers from various shops which are not their own retail storage facilities.
Zepto advertises 10 minutes delivery and according to their official website, they have a median delivery time of 8 minutes and 47 seconds.
Nowadays, I see more of Zepto's micro-warehouses popping up all around the major cities and in some towns across India.
So, Zepto is in an aggressive expansion mode now. Zepto has raised so far, a total funding of $361M. Zepto incurred a total loss of Indian Rupees Rs.390.4 crore in financial year 2022.
Considering that Blinkit (similar to Zepto), has majorly shut down services in areas where it cannot deliver groceries in under 10 minutes, do we think that Zepto will really disrupt the grocery delivery space and eventually make profits or is it going to be yet another startup that will indefinitely bleed investor's money and finally shutdown ?

thank you so much

 

[awesomewebsites]

It will take lot of years to become profitable. But future is good. Till then if they keep getting funding, they will be alive.

 

[Deleted member 1622952]

They are always making profits, they are just very good at hiding it.

 

[awesomewebsites]

They are always making profits, they are just very good at hiding it.

The owners might have salary in crores. They need not worry about profit.

 

[Rankon Guru]

As of now, none online e-commerce delivery channels are making a profit from their sales; all businesses are alive because of investor investments. In the future, depends on consumer habits and industry movements.

 

[NirvanaWolf]

I seriously doubt they'll sustain in the long run.
Maybe I'm missing out on something but the way I see it, their business model is flawed.
People mostly order when they get a discount or when they want to order small items that are low margin items.
All big purchases are made from large supermarket chains like D Mart where they get massive discounts.
All these quick delivery apps are just inflating their valuation by burning investor money and acquiring customers with big marketing campaigns. None of these customers are going to become long term loyal buyers.