Exploring Zepto’s Business Model in 2026: How It Redefines Quick Commerce

About Zepto

Zepto was founded in 2020 by Aadit Palicha and Kaivalya Vohra in India, with the aim of revolutionising online grocery shopping with 10-minute delivery. The company has quickly grown to become one of the largest players in the "quick commerce" industry.

By creating a network of "dark stores" (mini-warehouses) in urban areas, Zepto ensures rapid inventory restocking and efficient fulfilment. As of 2026, Zepto is rapidly expanding its reach across India and attracting significant investments, while offering groceries, essentials, and lifestyle products. Zepto's unique value proposition lies in its ability to deliver products to customers faster than traditional e-commerce models, meeting the needs of today’s fast-paced lifestyle.

How does Zepto make money?

Revenue Stream Breakdown:

• Product Sales: Revenue from groceries, lifestyle products, and daily essentials sold via the app and website
• Delivery Fees: Charging a fee for express deliveries, depending on the order size and location
• Subscription Fees: Revenue from premium services like faster delivery and loyalty programs

Revenue Contribution:

• Product Sales: 70%
• Delivery Fees: 20%
• Subscription Fees: 10%

Pricing Strategy:

Zepto adopts a competitive pricing strategy, offering affordable prices for groceries and essentials. By optimising its supply chain and delivery efficiency, the brand maintains cost-effectiveness, even with its fast delivery services.

Zomato’s marketing strategy emphasises customer engagement and efficient delivery, similar to how Zepto positions itself in the competitive online grocery delivery market. Tap to learn more.

Zepto Business Model Canvas

Zepto Value Proposition

Zepto's business model is anchored in its ability to provide ultra-fast delivery within 10 minutes, setting it apart from traditional e-commerce. This model caters to customers' increasing demand for convenience, particularly in urban areas where time is of the essence. The use of "dark stores" (local warehouses) allows Zepto to efficiently store and dispatch products, reducing delivery times and costs.

The app-based platform allows customers to easily browse, order, and track their items. Zepto focuses on delivering a seamless experience by offering groceries, snacks, and daily essentials at competitive prices. With its subscription services, Zepto not only caters to one-time buyers but also builds customer loyalty through personalised offers and premium services.

By focusing on high-density urban areas, Zepto has managed to significantly reduce delivery times and costs while maintaining strong customer relationships. The brand also embraces innovation in the form of AI-powered logistics and customer service, ensuring an efficient and user-friendly shopping experience.

Zepto Cost Structure

Zepto’s major costs include logistics, marketing, technology development, and warehouse operations. The company minimises operational expenses through efficient fleet management and optimised supply chain processes. Key cost-saving strategies include automation in inventory management, outsourcing of logistics to third-party providers, and leveraging economies of scale in dark stores. Despite its rapid delivery model, Zepto maintains healthy margins by focusing on efficient operations and leveraging technology to streamline processes.

Zepto Customer Segment

Zepto primarily targets urban, middle-income consumers aged 18-45 who are tech-savvy and value convenience. These customers are often busy professionals or families who seek quick and reliable grocery delivery. The brand also appeals to young, digital-first consumers who prefer using mobile apps for their daily needs. Zepto’s customer base is concentrated in high-density urban areas where quick commerce is most in demand.

Zepto Distribution Channels

Zepto operates on a digital-first model, with its primary channel being its mobile app and website, where customers place orders for quick delivery. The brand also leverages social media platforms and targeted digital marketing to reach customers. Zepto’s unique omnichannel approach integrates digital interfaces with physical operations, including dark stores in urban areas, ensuring a seamless shopping experience for its customers.

Zepto Key Partnerships

Zepto’s key partnerships include grocery suppliers, third-party logistics providers, and technology partners. These collaborations allow Zepto to maintain a robust supply chain and deliver goods in a time-efficient manner. The company also partners with delivery fleet providers, optimising its delivery network to ensure fast, reliable services. Additionally, Zepto is focused on forging alliances with sustainable packaging companies and eco-friendly initiatives, in line with its commitment to responsible business practices.

Swiggy’s marketing strategy, focused on customer-centric campaigns and tech-driven convenience, offers valuable comparisons to Zepto’s marketing approach in the online grocery sector. Know more.

SWOT Analysis of Zepto

Zepto Competitor Comparison

What’s New With Zepto?

Zepto continues to innovate with its use of AI-powered logistics for faster order processing and efficient fleet management. The brand is also increasing its focus on sustainability with green packaging and responsible sourcing. Furthermore, Zepto is exploring opportunities in new markets and expanding its product offerings beyond groceries, including lifestyle products and personal care items.

Key Takeaways for Students / Marketers

• Scalable Business Model: Zepto’s model can scale rapidly by expanding dark stores in high-density urban locations, adapting to growing demand for quick commerce
• Efficiency in Logistics: Zepto’s focus on logistics optimisation is key to its ability to offer fast delivery and maintain profitability
• Customer-Centric Strategy: Zepto’s emphasis on speed and convenience sets a benchmark for brands aiming to innovate in customer experience

Conclusion

Zepto’s business model has redefined the grocery delivery industry by focusing on ultra-fast service and a seamless digital experience. As the demand for quick commerce continues to grow, Zepto is well-positioned for long-term success. Will its rapid expansion disrupt traditional e-commerce further?