With no signs of slowing down, Zepto, an Indian Q-commerce startup, has become a to-go grocery delivery app for all.
Aadit Palicha and Kaivalya Vohra founded this Q-commerce company in 2021. Though Zepto is headquartered in Mumbai, it has over 350 dark stores in 10 major cities in India and aims to double this count to over 700 by March 2025.
With a recent valuation of $5 billion, this young grocery delivery startup is now competing in the big league against giants like Amazon, Blinkit, and BigBasket.
With a compelling business and a revenue model, Zepto is slowly starting to become an online grocery delivery app for households. For those who’re curious and want to know how Zepto’s doing so well, this blog is a good pace start.
Here, we’ll discuss what it takes to build an app exactly like Zepto, the essential features of a grocery delivery app, Zepto’s business model, and even the costs involved.
So, let’s begin.
Why is Zepto so popular?
Very similar to Blinkit, Zepto is an on-demand, quick-service mobile delivery app that delivers everyday home essentials and more at the tap of a button.
The name of the brand Zepto derives from the unit of measurement called the zeptosecond. A zeptosecond is equal to one trillionth of a billionth of a second, truly reflecting the brand’s biggest USP—-quick deliveries.
Along with the promise of a 10-minute delivery, Zepto also offers a range of products on its app, including fruits, vegetables, dairy products, snacks, personal care products, home essentials, and more.
According to Statista, the worldwide online grocery industry is worth $ 50.28 billion and is expected to grow at a CAGR of 26.8% from 2023 to 2030. Zepto has clearly carved its space in this growing market of on-demand grocery delivery.
By maximizing user convenience, Zepto and apps like it are truly transforming the way we shop our groceries.
Zepto’s Business Model
Zepto is in the buzz because of its bold 10-minute delivery promise. This promise is not just another marketing tactic, but a strategy—-that is foundational to Zepto’s business model.
In this section, we’ll talk about Zepto’s workflows and how it supports its business model.
A well-connected network of dark stores or retail distribution centers supports Zepto’s grocery-delivery business model. These are usually located within a 3 km radius and are not open to the public.
By strategically investing in distribution warehouses in high-density neighborhoods, Zepto has managed to achieve 10-minute deliveries.
As soon as an app user places an order, the nearest Zepto outlet is notified. Simultaneously, a delivery driver is assigned the task of picking up the order and delivering it.
Because the dark stores are ergonomically designed, the packers can operate quickly and keep the orders ready even before the driver arrives for pickup.
The entire process of ordering from the Zepto app, packaging, and dispatch takes less than a minute.
What may seem like magic, is actually Zepto’s battle-tested PPB formula in play. And that’s the real reason for the success of Zepto’s dark store business model:
Picking
Zepto’s packers are technologically well-equipped and they exactly know where each item is stored.
Packing
All the ordered items are collected first and then packed quickly. Zepto has standardized its packaging material to avoid any delays.
Bagging
Zepto insists on the delivery agent exiting the warehouse as soon as they’ve collected the order.
While this business model is not new, it is certainly challenging. Managing and operating dark stores in India is tough. The congested roads and heavy traffic during peak hours have posed a challenge to Zepto’s 10-minute delivery promise.
However, by strategically planning and investing in the locations of their dark stores, Zepto has achieved something truly remarkable. This is the reason for Zepto’s lightning-fast deliveries.
Additionally, Zepto also leverages AI tools to track geostatistical data and optimize last-mile deliveries. The access to these insights and AI analytical tools has allowed Zepto to navigate through traffic dynamics and fulfill orders efficiently.
How Does Zepto Make Money?
Like every on-demand grocery delivery app, Zepto has multiple lines of revenue as described below:
Commissions
Zepto charges a certain percentage of commission from the merchants and dark store owners on these orders. The percentage of commission depends on the average value of the orders.
Delivery fees
Unlike its competitors, Zepto offers free deliveries for all orders above INR 250. This is a great way to upsell, as most app users will want to meet the minimal shopping limit. As a result, they will probably shop for more items from the Zepto platform.
Subscriptions and Memberships
Zepto encourages frequent app users to opt for its subscription plan. By becoming a Zepto member, users can save significantly, get access to Zepto Cafe, and unlock a “khata-like” feature where users can settle all their bills every fortnight instead of paying as they deliver.
Sponsor Advertisements
Zepto accepts sponsored advertisements from grocery brands. For displaying brand products on their interface, Zepto issues a marketing fee.
Zepto is India’s first unicorn startup of 2023. After several investment rounds, Zepto has raised close to $1.3 billion.
Since then, Zepto has come a long way. It has expanded like wildfire, reducing its burn rate per order to just 5%. Zepto’s growth rate per month is close to 50%, indicating a huge market and significant demand for on-demand grocery apps like Zepto.
How to Build an App like Zepto
Impressed with Zepto and want to build an app like Zepto? Here’s everything you need to know:
Aside from strategic dark store acquisitions, Zepto has also significantly invested in its mobile ordering application. From creating a seamless app, and adding advanced features to providing timely support—Zepto does it and all.
So if you too want to build an app like Zepto, you’ll need to focus on creating a user-friendly and highly responsive mobile app.
Step 1: Decide your USPs
The on-demand grocery delivery app market is highly competitive. To stand out, you need to decide your brand values and USPs and communicate them effectively. Zepto’s 10-minute delivery promise is a perfect example of how to use your USPs to target consumers.
Step 2: Planning grocery app features
Develop an on-demand grocery delivery app with a full range of advanced features and modules. Make these features accessible and easy to use.
To get you started, here’s a list of some of the top grocery delivery app features that you simply cannot afford to miss:
Hassle-free Registration & Sign-in
Enable quick sign-ups with easy and user-friendly registration processes. Allow users to create their profiles using social media sign-ins.
Advanced sort & search options
Improve the grocery app user’s experience by making product search more efficient with filters and a search bar that works across the entire platform. Have a category listing to make online shopping easier for the app users.
Payment Gateways
Offer multiple payment options like debit cards, credit cards, UPI, QR, and COD and facilitate secure, one-tap transactions on the app.
Real-time Order & Delivery Tracking
Enable users to check on their orders in real-time through GPS tracking and real-time updates. The order confirmation notification typically includes an order ID, order summary, and estimated delivery timings. It also includes a live-tracking segment where users can see the movement of delivery drivers in real-time.
User Dashboard
The dashboard lets users quickly check their previous orders and repeat them exactly as they were. The user dashboard also allows them to check out the delivered products and pending orders.
Recommended Products
Accelerate users’ shopping experience and create opportunities to upsell products with the recommended product functionality.
Wishlist & Add-to-Cart
Enable users to add their selected groceries to a virtual cart. Users can also edit and build a wishlist of items they wish to purchase. Also, add a notification option for out-of-stock items—so users know when they are refilled and can continue shopping.
Order Customization
Customers should have the freedom to browse seamlessly and add products to the cart before checkout. Also, include functionality to adjust quantities of ordered products for maximum convenience.
Push Notifications
Notify your app users about their order and delivery updates using push notifications. YOu can also leverage push notifications to promote offers and engage dormant users.
Refund Policy
Instill trust by setting up a transparent and fair refund policy. Train customer service reps to escalate and resolve customer queries promptly. You can also integrate customer servicing AI tools to heighten customer satisfaction.
Ratings and Reviews
Giving customers tools to voice their concerns regarding the quality and delivery of ordered groceries.
Inventory Management
Track inventory and optimize the supply and packaging of grocery items. An inventory management module will help dark store owners mitigate losses due to inventory shortages. Track average daily orders and leverage data insights for efficient inventory management.
In-app Communication Channels
Facilitate conversations through in-app chatting or voice calls. This will reduce the need for you to follow up on delivery drivers or customers.
Step 3: UI/UX for your grocery delivery app
Designing the user interface for your on-demand grocery delivery app is probably the most important part of the process. Your app should be neat, easy to use, and should reflect brand values.
This process will involve multiple mock-ups, wireframes, and design templates. Follow an iterative feedback model to fast-track designs.
To start with, keep your app design simple and easy to navigate. Intentionally place CTA and navigation buttons within the line of sight. Also, make sure your design is responsive and can adapt to all screens, including mobile phones, tablets, and laptops. Lastly, personalize your app with the brand logo, taglines, and brand colors.
Step 4: Backend Development
Your app’s backend will handle all the information storage and processing. Hence, it’s important to secure all backend processes and encrypt data to prevent hacking or data leaks. Depend on reliable third-party integrations to facilitate operations like ordering, payment processing, and customer information management.
Also, make sure your backend process can handle more workload as your business grows. Make it flexible and agile—so when the time comes, you can scale seamlessly.
Step 5: Choosing your tech stack
For a compatible grocery app that works well with all operating systems, choose frameworks like React Native or Flutter for cross-platform development. For Backend Development, try using a robust interface like Node.js, Django, or Ruby on Rails.
Use reliable databases like MySQL, PostgreSQL, or MongoDB for efficient data management. Lastly, take your app online with Cloud Services like AWS or Google Cloud. Inspect cloud space and user seats carefully before purchasing a cloud-service subscription.
Step 6: Testing and QA
Before launching your grocery delivery app, it is important to test it thoroughly for functionality, usability, and security. This involves conducting a range of tests, including unit testing, integration testing, and user acceptance testing.
Step 7: Launch and App Deployment
Now that we are done with testing and debugging—your app is flawless and ready to be deployed. However, you still need a plan to launch it. We recommend you start with a soft launch to test the waters. Observe how your grocery delivery app is doing in real-world scenarios.
Next, you need to optimize your app store optimization: Put relevant keywords and descriptions to your Play Store and App Store accounts. Affiliate marketing has become particularly effective for your grocery app marketing. Use it to spread the word. You can also offer exclusive discounts for first-time users and encourage them to invite friends and family for bonuses.
How much does it cost to create a Grocery Delivery App like Zepto?
As we have seen, the core difference between a grocery delivery app and a q-commerce on-demand grocery delivery app is the business model, with the app being the centerpiece.
The cost of developing a grocery delivery app like Zepto depends on various factors such as the features you want to include, the platform you want to launch your app on, the geographical location of your target market, your tech stack, and more.
While the actual cost may differ, you’ll end up spending anywhere between $10,000 and $50,000 to develop a basic version of your app.
You can expect to spend more if you want to include additional features or launch your app in multiple locations.
But what if we told you that you could have all the advanced features of Zepto, the best tech infrastructure, and a highly engaging app interface for just $49 per month?
That’s exactly where Deonde can help you. DeOnDe offers white-label grocery delivery solutions that are completely customizable and can be launched within 7 to 10 days.
DeOnDe’s grocery delivery suite is an affordable Zepto alternative—perfect for startups–and is available at only $49 per app per month!
DeOnDe offers feature-rich grocery delivery apps so you can quickly launch your online food delivery business—without having to develop an app from scratch.
Besides, it’s highly customizable and you get to choose and edit features, elements, style, and layout to your liking.
Build your Zepto-like app with Deonde
Building an app like Zepto can be exhaustive. You need to have a core tech team, a support team, testers, designers, and more. Deonde offers a simpler, straightforward alternative to building your grocery delivery app like Zepto from scratch.
Just sign up with Deonde, customize your app, and launch it. Deonde takes care of everything from providing tech support to regular updates.
So what are you waiting for? Check out Deonde today and sign up to have your Zepto-like grocery delivery app ready to launch in just a week!
Conclusion
Zepto’s rapid rise in India’s e-commerce landscape shows the potential for quick-commerce business models.
By leveraging technology and a strategic network of dark stores, Zepto has redefined the grocery delivery market by offering lightning-fast delivery times and a wide range of products.
However, if you’re a startup or a last-mile delivery entrepreneur who wants to replicate an app like Zepto—you’ve certainly posed a challenge for yourself.
Creating an app like Zepto requires UI design, tech stack, coding, testing, deployment, and constant upgrades. While this is easier said than done, it will also cost you anywhere from $10,000 to $50,000. While some startups can afford to do so, others simply don’t have the resources and finances to build an app like Zepto from scratch.
If you fall into the latter category, don’t feel discouraged, as Deonde is here to help you. With Deonde’s white-label grocery delivery apps, you can launch your app in 7 days at just $49!
Deonde offers a perfect opportunity for aspiring entrepreneurs who want to enter the booming on-demand grocery market. Start your free trial now!
FAQs
What is Zepto?
Zepto is a q-commerce, on-demand grocery delivery app that allows customers to shop and receive household grocery items from a mobile app.
How Long Does it Take to Build An App Like Zepto?
The time to build an app like Zepto depends on complexity, features, and team efficiency. On average, it may take up to a year to launch your on-demand grocery app if you’re building it from the ground up.
Why Invest in Grocery Delivery App Development?
The market of on-demand grocery delivery apps is booming. Even young startups like Zepto have now become unicorn startups by investing and running a grocery app development business. Today, Zepto and apps like it are worth billions. With increasing reliance on grocery delivery apps, investing in the process of grocery delivery app development is the best way to build a successful and profit-churning business.
What are the Benefits Of Online Grocery Delivery App Development?
The benefits of online grocery delivery app development include ultimate convenience, time and cost savings, and access to a wide product selection from the comfort of your home. For businesses, grocery delivery apps are a perfect way to scale up, reach a wider consumer market, and build strong consumer relationships.
