Zepto Cafe Scales Down Amid Drop in Orders and Rising Competition

Zepto Cafe, the rapid food delivery arm of quick commerce startup Zepto, is scaling back its operations. The service, known for delivering hot meals in under 10 minutes, is facing a combination of operational hurdles including supply chain bottlenecks and a shortage of trained kitchen staff, as per The Economic Times report.

This strategic pullback comes at a time when competitors like Blinkit’s Bistro and Swiggy’s Snacc are expanding their footprint in major urban markets, intensifying the battle for dominance in the fast-growing 10-minute food delivery space.

What’s Behind Zepto Cafe’s Slowdown?

According to people familiar with the matter, Zepto Cafe has experienced a sharp drop in daily order volumes through June, compared to earlier in the year. In May, the company discontinued Cafe services at 44 of its approximately 1,000 dark stores, suggesting a significant re-evaluation of the vertical’s performance.

Beyond the supply and staffing challenges, insiders point to a broader effort by Zepto to rein in its cash burn. The four-year-old startup is also reportedly slowing the launch of new dark stores its small-format warehouses that enable ultra-fast deliveries.

Rising Competition in Quick Commerce

While Zepto recalibrates, competitors are pressing ahead. Eternal-backed Blinkit and Swiggy’s Instamart have been steadily increasing their market share in the quick commerce segment, particularly during the April to June quarter. Despite slowing their pace of new dark store openings, both firms have ramped up food delivery innovations like Blinkit’s Bistro and Swiggy’s Snacc to meet urban demand.

Read More: PE Divergence in Nifty 50: Trent, Eternal at the Top in the 100x PE Club; Tata Motors, ONGC Down.

Conclusion

The quick commerce market is evolving rapidly, and with food delivery becoming a key frontier, players are under pressure to balance scale with sustainability. Zepto’s move to scale back Zepto Cafe reflects the broader challenge of maintaining operational efficiency while competing in a high-burn, high-expectation environment.

Whether Zepto revives Cafe services in the future or pivots to a different model will depend largely on how it navigates logistics, staffing, and competition in the coming months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.