Is 10 minutes grocery delivery business model sustainable?

Zepto Grocery Delivery

Zepto is a new grocery delivery company in town which promises to deliver the groceries in 10 minutes. With the entry of the US-funded company, Zepto in India the existing grocery delivery companies such as BigBasket, MilkBasket, BlinkIt (earlier known as Grofers) have started feeling the pressure.

Swiggy instamart has a business model which delivers groceries in 30 minutes but after Zepto started capturing the Indian market, BlinkIt started with the implementation of the 10 minutes delivery business model but didn't get much support from the Investors and very soon got ran out of cash. Zomato came to the rescue and acquired BlinkIt for $100 million. Zomato has been earlier in the business of grocery delivery but they exit the market. Are there plans for Zomato to enter the grocery delivery market again? Only time will tell.

But Zepto has really changed the dynamics of the grocery delivery market. Zepto is able to achieve a goal of 10 minutes delivery by setting up the dark stores (a fancy name for the small warehouse which is located very close to the delivery locations). But is the business model viable and has the potential to scale up as demand goes up?

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