In an unprecedented business trend, quick eCommerce grocery delivery application Zepto raised USD 60 million in its very first funding round. The company’s theory about the ineluctable market of faster delivery came to the surface, which instantly led them to the eCommerce forefront.
The company exhibited a tremendous opportunity in the hyperlocal delivery sector, the sleeping giant for the past several years. The 10-minute delivery business, initiated by Stanford dropouts, typically claims to distribute the order at buyers’ doorstep with an average of 8 minutes 40 seconds.
What’s the business model for 10-minute online delivery?
The grocers that are facilitating the 10-minute Q-commerce model have created multiple dark stores and mini-warehouses across India. The dark stores are located in the neighborhood, but people can’t visit them so they are enabled to order online. The deliveries from these dark stores are more reliable because they are designed to meet quick delivery requirements such as cool rooms, easy transit, and faster order fulfillment.
The stores are optimized with geographical location data intelligence, last-mile operations, weather conditions, traffic dynamics, and road patterns that make the 10-minute delivery concept feasible.
The quick commerce market and dark store model
Since Zepto and Grofers broke the ice, an assemblage of business opportunities had been unlocked for hundreds of young entrepreneurs.
Many startup businesses have been seeking to contact a top mobile app development company to build an app for a 10-minute delivery service (called super quick commerce or eCommerce) because they want to adapt a new trend to meet the present market and consumer demands.
Such retail or supermarkets operate smoothly with a super inventory model that picks the groceries from their next-door micro-warehouses or own dark stores.
The dark store model offers an upper hand to ten-minute delivery startup enterprises as compared to the obsolete traditional marketplace model. Zepto founders took an opportunity to start a quick commerce business that purveys day-to-day grocery items to consumers almost instantly.
They ventured into it only after studying successful global competitors such as Turkey’s Getir and Berlin-based Gorillas; it was studied how those businesses not only withstood the pandemic but also grew at an implausible pace.
According to the founder of Zepto, the grocery delivery business has been growing at 200% annually, and 10-minute grocery delivery can be extolled for its own popularity to carry great prospects in the coming years.
Any neighborhood grocery store is called a dark store. These small warehouses have been the best and quickest suppliers of all grocery and other FMCG items for years, especially in India. The dark stores have been always popular and the backbone of the retail industry on the ground, but the electronic model (quick eCommerce) had remained undercover.
Zepto business model unveiled the opportunity and explored the best features of the 10-minute grocery delivery application that would benefit the consumers who wanted goods last minute.
The typical business model canvas shows diversified users and buyers and their revenues and expenses with details –
With the success of quick eCommerce delivery mobile applications, top similar apps like Zepto (Swiggy, Grover, and so on) also jumped into the 10-minute delivery business model to create a milestone of hassle-free grocery-shopping milieu. More startup enterprises in the future are likely to announce an enormous amount of money to invest in super-fast delivery apps. Nevertheless, different apps in the present day claim different delivery timings ranging from 10 to 15 minutes.
What’s the 10-minute online delivery concept?
The on-demand business model that’s allowing SMBs to survive is when optimized with a 10-minutes delivery concept enabling those businesses to now thrive.
Presently, the 10-minute online delivery concept is buzzing in the industry and increasingly, grocers are embracing this concept as it’s warmly welcomed by the customers. The core idea behind the 10-minute online grocery delivery concept is the delivery of groceries within 10 minutes of orders placed. The grocers making efforts to fulfill the promise irrespective of traffic and weather conditions.
However, the 10-minute online delivery in grocery delivery app development is a part of the Q-commerce model that works well in tier-1 cities, but expanding to metro cities is a little doubtful due to logistics challenges, safety concerns, and quality issues. Zepto, Blinkit, and other grocers have made it possible.
What are the Monetization models to earn money?
When businesses invest millions in building a 10-minute grocery delivery app by hiring developers they expect to reap advantages, be it tangible (Profits) or intangible (branding, credibility, and others) benefits. Here are the Zepto revenue models that help grocery delivery businesses capitalize.
Delivery charges
Make deliveries free when the orders placed are above the specified shopping limit. Every time, the people won’t order in volume, and there, the app gets a chance to make money.
Membership fees
Provide special privileges to the people who are ready to pay extra money. For instance, the users who opt to gain membership to avail of the special discounts and rewards willingly pay the membership fees.
Advertisements
Allow third-party businesses to display their ads on the app at various locations to target a specific set of audiences in return for a certain amount.
Put charges on dark store
Dark stores pay a specific amount quarterly or annually for getting registered with the application. These charges ensure dark store enables quick deliveries seamlessly.
Build a 10-minute grocery delivery business app with a difference
With Artificial Intelligence, you can build a better 10-minute quick eCommerce application that can build a powerful network for super optimization. With the help of geospatial data and geo-intelligence, your 10-minute delivery mobile application can have unique features to calculate traffic, route optimization, demography, and also delivery dynamics of all kinds.
The dark store or cold rooms can be built on a special quick commerce 10-minute grocery delivery model to meet the instant transportation required in moving packets from one place to another. More workforce can be deployed for packing and delivering goods at the nearby houses from where the orders have been placed.
To overcome traffic quagmire, the nearest stores can be informed instantly about quick grocery orders through technological advancements such as location intelligence. Business intelligence can also be used with machine learning technology to know the behavior and buying patterns of consumers who are on a 10-minute grocery delivery mobile application.
Streamline your grocery delivery business operations with a mobile app.
How much does it Cost to develop a 10-minute grocery delivery app?
The research states that the Q-commerce business is expected to reach $5 billion by 2025. It intrigues online grocery delivery businesses to develop apps like Zepto and implement the 10-minute grocery delivery concept.
Similar to other applications, defining a cost estimate for the grocery delivery app with 10-minute delivery feature enablement is implausible. The grocery delivery app development cost depends on several factors such as the app’s type, size, design complexity, features, and grocery delivery app developers’ location and experience. An average grocery app development cost ranges between $10,000 to $40,000. The cost is calculated by taking some of the most important factors into consideration.
10-minute grocery delivery concept implementation requires a logic creation that doesn’t cost more than $3,000. For more details, you can get the assistance of experts from a grocery delivery app development company who can help you with everything.
Features of the 10-minutes grocery delivery app
The benefits of on-demand delivery apps are enhanced with the 10-minutes delivery concept. The grocery delivery app with a 10-minute delivery concept comprises three different interfaces, – a customer app, a delivery agent app, and an admin app.
User/Customer app
Enable users to easily onboard with phone numbers or social login.
Easy navigation structure makes the search for grocery product effortless.
Multiple payment modes allow users to checkout at speed.
Users can define the location for delivery by adding it manually or selecting the pin on the map.
Track the orders in real-time to check where the delivery agent has reached with the order.
Schedule the delivery based on the user’s availability.
Provide feedback for the products and services under the review/rating section.
Notify the users about new arrivals, order status, and discounts.
Delivery agent app
Get an update immediately as soon as the order is accepted by the dark stores.
Provide the shortest route to get the order delivered within 10 minutes.
A single dashboard to view the scheduled order deliveries, earnings, and more.
An in-app wallet allows delivery agents to view the earnings, tips, and incentives in one place.
Admin app
View and manage the list of dark stores and their inventory for faster order fulfillment.
Track and view the delivery agent’s availability, performance, and other areas which need to be optimized.
Check the reports for investment and gross revenue earned to view profits.
How does the 10-minutes grocery delivery app work?
10-minute grocery delivery apps like- Swiggy Instamart, Zomato Insta, Blinkit, and Zepto partner with gig workers or contractors for quick deliveries. The number of delivery agents is allocated to a dark store based on the number and frequency of orders, which is identified based on predictive analytics. AI technology integration helps in maintaining inventory levels by continuously checking the inventories and then sending alerts for replenishing the items that are low in stock.
Moreover, the demand for grocery delivery is flat with barely any peaks, but still, the app helps in tracking sales patterns so that the extensive demand for groceries at a specific time is planned and executed accordingly.
If packers and delivery persons are equipped with smart gadgets such as tablets and smartphones to know the exact location of not just buyers but also dark stores and cold rooms, they can even achieve under 10-minute grocery deliveries taking the optimal route to pick and transport the items to the buyer’s doorsteps.
Customized mobile applications for 10-minute delivery can also help customers to have ETA (Estimated Time of Arrival) which can keep them hooked and yet satisfied with the progress and tracking of their quick eCommerce grocery orders.
True to their nature, such retail business mobile applications have an intuitive UI (User Interface) which is easy to navigate and simple to browse through different categories for instant grocery order placement.
Delivery persons are the key
Delivery riders are the backbone of the quick eCommerce grocery delivery business model. Keeping many delivery persons on standby modes near dark stores and cold rooms can help arrange the fastest grocery goods delivery at buyers’ doorsteps.
Quite similarly, applications such as Uber, Zomato, Swiggy, etc. use their powerful network of delivery boys to receive orders from the nearest buyers, pick from the nearest sources, and deliver.
Equipped with the latest gadgets, the riders are allocated with orders derived from data analysis and predictive trends performed by artificial and business intelligence. The customization of quick eCommerce delivery applications can maintain inventory and orders with the highest efficacy as they allocate the delivery persons wisely.
You can build a 10-minute grocery delivery application that can analyze the peak hours of orders and deliveries, dense areas where potential customers reside, and other important factors such as the best and shortest routes –it is all to plan the entire process of handling the order lifecycle smoothly and swiftly.
Cities with a large consumer base and revenue distribution can be tapped with quick eCommerce business models such as the Zepto revenue model. The rapid expansion of dark stores (the grocery stores next door) is possible in such cities with dense populations. The companies can easily find consumers, suppliers, and delivery persons in abundance. Startup enterprises can simply work out the cost to develop a grocery delivery app and proceed.
You should hire eCommerce app developers to customize 10-minute delivery software with artificial intelligence; it helps you understand and analyze the behavior patterns of buyers and handle the inventory at dark stores efficiently. Such data can be further used to develop business acuity by expanding store items and acquiring a bigger customer base.
Mitesh Gosai
He loves challenges and adept at finding tech-solutions that complement business ideas. Working in the capacity of Project Manager at Prismetric he strives to leave no chance for glitches in his implementation. He incorporates his extensive experience in his writings about new gadgets, tech stories, updates and innovations in technology, management tips, and inspiring app technology related information.
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