Delivery Wars: Zepto's 10-Minute Food Model Gives It A Chance At The Big Table
Despite the rise in competition in quick commerce segment, the 10-minute food delivery space provides an opportunity to expand total addressable market, Jefferies said.
The rise of 10-minute food delivery space in the quick commerce segment has "stirred the market" and presents an opportunity for Zepto Cafe—the instant food delivery arm of Zepto—to become mainstream, according to a note issued by Jefferies on Tuesday.
When Zepto Cafe introduced 10-minute food delivery in 2022, it was a bold experiment in convenience. Fast-forward to today, and the concept has taken off in a big way, with new players and established food aggregators diving into the space, the brokerage pointed out.
What started as a niche offering has now branched into two major business models: the in-house dark store or cloud kitchen setup, where food is prepared and dispatched from a centralised location, and the restaurant partnership model, where platforms collaborate with restaurants to curate quick-prep menus, it explained.
The rise of 10-minute food delivery isn’t just about speed—it’s reshaping the competitive landscape of food aggregation. According to a recent Jefferies note, this service allows platforms like Zomato and Swiggy to expand their customer base, boost engagement with existing users, and challenge the unorganised sector, including local eateries, street vendors, and food stalls.
"Notwithstanding rise in competition, there is clearly an opportunity for total addressable market expansion," the note said.
Jefferies suggests that by catering to in-between meal snacking and impulse purchases—like coffee or tea, which consumers might otherwise make at home—food aggregators can unlock new revenue streams.
The Players And The Business Models
Zepto Cafe may have pioneered the space, but competition has quickly followed. In the in-house kitchen model, Blinkit’s Bistro and Swiggy’s SNACC have emerged as key contenders, while startups like Swish and Zing are testing the waters in select cities, Jefferies said.
Zomato’s ‘Quick’ and Swiggy’s ‘Bolt’ have additionally introduced restaurant-driven models, delivering pre-prepared or rapidly assembled meals. Other platforms, including Magicpin and Ola Dash, are leveraging the Open Network for Digital Commerce to facilitate rapid food delivery.
The logistics of this business hinge on efficiency. Delivery platforms prioritise dense urban areas with small radii to ensure ultra-fast fulfilment. While the initial menu offerings were limited, platforms have now expanded their selections to over 100 food and beverage items. The entire process is meticulously timed—most of the 10-minute window is dedicated to delivery, leaving only 2-3 minutes for food preparation and packaging, the note stated.
The Challenges: Legal, Health, And Industry Backlash
Despite the enthusiasm, the 10-minute food delivery trend has raised concerns. The National Restaurants Association of India has warned of potential legal action against Zomato and Swiggy, arguing that their dark store models amount to "private labelling", Jefferies pointed out.
The NRAI contends that food aggregators are leveraging restaurant data collected through their main platforms—data that is not shared with the restaurants themselves.
Adding to the debate, the Federation of Hotel & Restaurant Associations of India has urged regulators to intervene, citing concerns about data misuse, unfair competition, and food safety.
On top of this, health experts worry that the rapid-fire model will encourage the consumption of processed and pre-packaged foods, potentially impacting long-term dietary habits, the note stated.
