Is Zepto a gold medallist or a bronze medallist? (Republished FULL Episode)
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- Опубліковано 15 вер 2024
- We've unlocked the full and unedited subscriber version of episode three which we released on August 1 for Premium subscribers of The Ken. Now you can listen to it wherever you listen to your podcasts for free for a few weeks.
In 2021, as the pandemic still raged on and we washed our vegetables and supplies before consuming them, a young delivery startup promised that you can get all your groceries - everything you need - delivered right to your doorstep. In 10 minutes.
This was pretty crazy, back then.
Zepto was written off as an ambitious, overhyped startup run by two founders who had barely outgrown their teenage - by competitors and experts alike.
In 2024, Zepto has now raised $1.2 billion in venture capital, with a valuation on $3.6 billion. Everyone was wrong about this little startup, which seems to have achieved something that retail brands only dream to: changing consumer habits. 10-minute delivery is now the norm - so much so that the likes of the good old retail giants Dmart and Reliance Retail are scratching their heads. Even Flipkart and Amazon are scuttling about, trying to crack the hyperlocal delivery space.
Who would’ve thought Zepto would be the company to set the cat among the pigeons?
It’s not random, though. Zepto has tapped into specific advantages - categories, space, speed. And it certainly has timing to thank. All of these aspects have come together serendipitously for Zepto, but the real question is: does it pose a real threat to India’s largest retail brands?
And if it does, what will they do to stop Zepto?
In this episode of Two by Two, hosts Rohin Dharmakumar, CEO of The Ken and Praveen Gopal Krishnan (PGK), COO of The Ken speak with guests Seetharaman G and Arvind Singhal to break down how exactly Zepto managed to surprise everyone, and what this means for the e-commerce space, going forward.
About the guests:
Arvind Singhal is the founder of Technopak Advisors, a 30 year old management consulting firm best known for its insights on retail and consumer goods. Arvind is an absolute expert on all things retail, with 30 years of hands-on experience advising the most prominent retail companies in India and abroad.
Seetharaman G is The Ken’s deputy editor and lead writer on all things retail, FMCG and e-commerce. He’s reported on quick commerce as well as large retail brands in India week after week in Trade Tricks, the Ken’s paid newsletter on retail.
This is Two by Two, The Ken's weekly premium business podcast - we like to call it your own personal investigative brain. New episodes released every Thursday morning.
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Write to us at twobytwo@the-ken.com with your suggestions and what you thought of the episode.
Two by Two
Episode
September 2, 2024
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Thanks for full episode.
Amazing podcast guys!
But did ya’ll forget about Dunzo ? Didn’t they attempt the same thing way before Blinkit or Zepto and also got a investment (take over attempt) by Reliance. Dunzo failed but the players who came after managed to flourish...
Not tell tell the havoc the quick delivery agents have wrecked the road that it's impossible to go out now
So you order from quick delivery to avoid traffic by creating more traffic
You live in perhaps the most polluted country in the world,and one of your most promising startup space is quick delivery,and other delivery oriented firms …What does it tell us about India s future climate and its inhabitants?..worth pondering in some future podcast.
Great insights. Thanks for the podcast. Just posting couple of things that flashed through my mind while listening (definitely far fetched :) )
1. The 10 minute delivery and dark store model is very similar to the caching mechanism used by search engines for delivering quick results. There are always results but when accuracy becomes priority caching becomes the burden. The search ecosystem is constantly battling this for decades now. Now with AI tools being able to answer things on device the caching ecosystem might become too expensive. Similarly, once people figure out the local kirana also does the same thing many new entrants to kitchens might no longer use these services for groceries leaving the competition for last mile with giants who are already doing that business on razor thin margins ( this based on my limited knowledge). The return policies are a totally separate topic!
2. The market in India is mostly urban center because of the disposable income. With AI aggressively threatening white collar jobs in tech sector many IT hubs will stagnate and dilute away into remote jobs or automation sucking out the floating cash away from urban centers. Tier-2/3 where grocery shopping is also an outing opportunity, 10 minute delivery might never become a regular expenditure making dark stores too expensive to maintain. So the home delivery option from the store/mall might become a fallback.
On a personal note, half the times the brands and quantities I need for groceries are not available on the quick delivery option. The quick delivery apps are more like paan shops that also sell somethings no one ever expects them to like properties as brokers.
21:22 here comes out the real indian dad xD
Thanks for the full verson I would love to sub to just the podcast. (on android)
The way you said that the founders dont understand the india and its people and its market around 26th min, irks me. You didnt understand it before and dont understand it now as well. They built it from level 0, they solved a real problem in their society, neighbourhood and then expanded out.
What is "unusual and usual prodigy"? prodigy itself mean exceptional.
You guys are losing the credibility.