Zepto's business strategy to compete with competitors

Zepto is an online grocery shopping app in India which created a milestone in online grocery delivery business. In only 11 months with 60% return customers, Zepto's growth was 200%.

During lockdown when delivery of groceries was proving to be difficult, the idea of quick grocery delivery struck the founders of Zepto.

Zepto's existence

They started KiranaKart by pairing up with local shops and quickly delivering groceries, which later became Zepto.

Business Strategy

What are those business strategies that Zepto uses? And it's giving tough competition to well established and funded startups like Grofers & Big basket. Let's find out!

3 W's of Zepto

Zepto uses 3 Ws to study consumer behavior of the industry. What do consumers want and need? What will customers pay for? What is available in the market?

Success of Zepto

Customers wanted quick delivery and none of the options available in the market provided it. Zepto's concept of 10 min delivery changed the whole game. Which became possible because of the "dark store model".

Dark Store Model

Zepto studies the buying and spending pattern of the consumer along with its traffic routes to calculate their average lead time for delivery. After doing these, they finalize a location for their dark store. These are mini warehouses with the capacity to serve customers within the radius of 3 km.

10-minute Delivery

Zepto ensures that the lead time of picking, packing & bagging is 60 seconds. Which means after giving order till you click on check order tab till then you order will be dispatched from warehouse.

Customer acquisition strategy

Zepto provides great discounts, 10-minute delivery and free delivery on every first order. But retains customer for their amazing delivery time. While competitors keep burning cash by giving only discounts, Zepto retains more customers through speedy delivery.

Zepto understood the requirement of the customers better, and by focusing on the untapped need of the customers, it has established a successful business. Learn more about business strategies of other brands.