In India, food delivery apps are promising to deliver everything from biryani to beverages at customers’ doorsteps in under 10 minutes as the competition for impatient consumers intensifies among digital platforms. Companies like Zomato Ltd. and its rival Swiggy Ltd. are among at least five players that have unveiled or announced plans to offer rapid food delivery in recent weeks.
The methods used by these companies vary: Zomato’s unit Blinkit and Zepto’s Zepto Cafe rely on in-house kitchens to quickly prepare and assemble food, while Swiggy partners with major restaurant chains like Starbucks Corp. and McDonald’s Corp. to fulfill the 10-minute delivery promise.
While doorstep delivery has existed in India for decades, the past few years have seen a disruptive transformation due to technology, giving rise to startups offering ultra-fast deliveries. This change has been welcomed by India’s affluent, smartphone-savvy, urban population, eager for instant gratification. As a result, apps like Zepto and Blinkit now offer breakneck-paced delivery of items ranging from eggs to electronics.
Karan Taurani, Senior Vice President at Elara Securities India Pvt., explains that quick commerce has changed consumer behavior, making them more impulsive buyers. To cater to this shift, platforms have introduced rapid food deliveries to satisfy these impulses and enhance the user experience. The success of companies like Swiggy and Zomato has not only transformed the Indian retail sector but also made them stock market darlings. Swiggy shares have surged 53% since listing, while Zomato has seen a 133% jump this year.
As India’s 10-minute delivery trend enters the food sector, analysts see a new avenue for growth. According to a report by JM Financial, India’s online food delivery market is expected to more than double to $15 billion by March 2029. In 2023, online platforms captured only about 11% of the country’s total food consumption, compared to 40% in China and 58% in the U.S.
Zepto Cafe, the pioneer in 10-minute food drops, is adding 100 cafes per month and currently handles 30,000 orders daily. It faces competition from Zomato’s Bistro, Swiggy’s Bolt, Dash by Ola Consumer, and Magicpin’s MagicNOW, while the Tata Group-owned BigBasket is also working on its own service. Bolt, which has been operational for two months, already accounts for 5% of Swiggy’s food delivery orders, with projections for this to reach 10% soon.
However, as these services grow, concerns about food quality arise, especially given India’s rising obesity rates and increasing junk food consumption. Despite these concerns, companies assure that they maintain quality standards. Zomato emphasizes that its Bistro kitchen prepares fresh dishes, not microwaving processed food, while Zepto focuses on high hygiene standards and quality controls.
Maintaining delivery times on India’s congested and bumpy roads remains a challenge, but companies like Swiggy, which has expanded Bolt to over 400 cities, are optimistic about the potential of rapid food delivery. As Swiggy’s CEO, Rohit Kapoor, noted, consumers love faster services, and Bolt represents a significant bet for the future of food delivery.
