In today’s newsletter, I’ll give you a complete breakdown of Zomato’s 10-minute food delivery.
Why Zomato wants to do 10-minute food delivery
How will Zomato deliver food in 10 minutes
How will Zomato make money through 10-minute food delivery
🕹️Why Zomato wants to do 10-minute food delivery
Why 10-minute delivery? Isn't 30-minute delivery fast enough?
People want fast delivery. People will never say "We want slow delivery".
As Jeff Bezos said: "It's impossible to imagine a future 10 years from now where a customer comes up and says, 'Jeff I love Amazon; I just wish you'd deliver a little more slowly.' Impossible."
That's why Amazon brought delivery in one day instead of 4 to 5 business days.
That's why Dominos is bringing 20-minute pizza delivery instead of 30.
That’s why Zepto got $60 million funding.
And that's why Zomato is launching 10-minute food delivery.
Plus, people already love 10-minute food delivery. In February, a startup called Voosh started delivering food in 10 minutes in Bengaluru, and it is already getting 1000 orders everyday! So, Zomato has to get into 10-minute food delivery.
🕹️How will Zomato deliver food in 10 minutes
Zomato will build food stations in every neighborhood. Then, it will make a list of the 30 most-ordered dishes of every neighborhood.
For example, the top 30 dishes for my neighborhood would be something like: khaman, dhokla, fafda, jalebi, etc.
So Zomato will buy lots of fafda and jalebi and khaman and dhokla and stock them in my neighborhood's food station.
They will reheat and pack the fafda-jalebi and hand them over to the delivery person when the order comes.
Reheating and packing the food will take like 2 minutes. So the delivery person has like 8 minutes to deliver the food.
Since they have to cover a small distance with less traffic, the delivery person will be able to deliver the order in 10 minutes without speeding.
🕹️How will Zomato make money through 10-minute food delivery
At least, not for a long time.
Building a food station in every neighborhood in every city ain't cheap.
For the first few years, Zomato will have to spend lots of money on 10-minute food delivery, and it will make Zomato even more unprofitable :(
But the good thing is, these huge investments in 10-minute food delivery will enhance Zomato’s position in the food delivery market and give it an edge against Swiggy.
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