There is a problem with the most ecommerce start up company of India. They have dis-loyal customers. It means general public download both Amazon and Flipkart or Swiggy and Zomato. They only order from where they get higher discount.
Same situation is in the online grocery market which was dominated by Grofers, Swiggymart, Bigbasket and Danzo. People usually use two or three of them and only ordered where they get higher discount. It was happening in last few years.
Birth of Zepto
But everything changed when two teenager come together to make a start up which shaken all the other grocery companies. Aadit Palicha and Kaivalya Vohra started a start up named Kirana Mart in September 2020. It`s function was same as Bigbasket and Grofers. But they changed their business process in January 2021 and renamed their start up as Zepto.
They showed an insane growth after that. They get more than 60 percent customer retention which was unimaginable even in big online grocery market. Now the question arise what did these two 19 years old teenager do that they get such success in short span of time. Why people are nowadays ordering from zepto instead of grofers or bigbasket?
These two were locked in a small apartment in the time of lockdown, they started this online delivery start up which deliver grocery in houses. They noticed a pattern whenever a delivery was taken less than 20 minutes of time, they got re order from that customer. So they highly focused on the one thing. They started to deliver in fastest time under 30 minutes.
Change in pattern
Earlier customer got adapted in 1-2 hour delivery but when zepto started this 10 minute delivery everything changed in the online market. They used to deliver in such short span of time using dark store model. As local people`s buying pattern, purchasing frequency and spending capacity data are available with the help of pre study before entering, they used to pile up their storage that way.
Dark store model
They open a dark store warehouse which has the capacity to fulfil the demand of about 3 km radius. They pick up their order very fast. All the employee working in dark store have the tablets, so they know exactly which item is placed where. So after picking up the item, they packed immediately and hand over it to delivery partner. It takes only 1-2 minutes after you placed order. Delivery partners were well trained about the traffic, so they find shorter route to make the delivery in between 10 minutes.
- Case study and Reasons for failure of the million dollar start up Tapzo
- Case study of Interior designer business Start up BNK group
- Case study of Wow Momos which become a thousand crore rupees start up
- Reasons of Jio to become a monopoly of telecom sector in India
- RBI launches new scheme to expand the bond market in India
- IPO of the Go Colors company which is known for women bottom wear manufacturer
- A new superpower is rising which may the reason for the next world war
- How a small reselling application Meesho become 30 k crore business company
- Know everything about the new investment vehicle REIT
- How Nestle`s flagship product Maggi destroy other noodles brand of India
- Secret business model of the largest retailer of the world Walmart
- The business strategy of Casify by which it earns from its competitors
- Why the one of the most promising start up “Askmebazaar” failed
- How a small start up Zepto is competing with big players in the online grocery market
- How a small start up Rapido beat big giants like OLA and Uber in bike ride service
- Reasons of failure of a billion dollar Start up “Hike Messenger”
- Billion dollar Success story of an aviation company Indigo in few years
- Success story of an Indian Billionaire and his steel making company
- Business model of a start-up company which depends mainly on memes
- Why one of the most popular two wheeler brand failed in India?
- Rise and fall of Online Apartment buying and renting platform “Housing.com”
- How will jiomart disrupt and create a revolution in online grocery delivery
This is the way Zepto can delivery so fast. When other big players are focusing in giving big discounts they are focused to give the delivery in the fastest time. Till now, there strategy was successful. But now other online grocery company like grofers also following the same technique. They recently announced they will deliver most of the order in 10 minutes.
It will be interesting to see whether this small start up Zepto can compete like big players Grofers, Bigbasket or not in future.