Food aggregator Zomato has paused a 10-minute food delivery service and it will pivot to a different model, CNBC-TV18 reported quoting sources. In March 2022, Zomato had announced the 10-minute food delivery service called ‘Zomato Instant’.
Zomato in March had said the company will fulfil quick deliveries out of a “finishing stations’ network” located in close proximity to high-demand customer neighbourhoods. The company in March also said its 10-Minute Delivery system was on track in Gurugram.
In a blog post in Zomato in March, Zomato CEO Deepinder Goyal said, “Nobody in the world has so far delivered hot and fresh food in under 10 minutes at scale, and we were eager to be the first to create this category, globally!”
Following the announcement of a 10-minute delivery, Zomato’s board in June approved the acquisition of quick commerce start-up Blinkit in an all-stock deal for a total purchase consideration of Rs 4,447 crore. Blinkit still has about 400 such stores as of May 2022.
A dark store is a micro-fulfillment center for online orders. It is a retail distribution warehouse or centre which is specifically dedicated to those who shop online. A dark store acts as a lifeline of quick commerce platforms like Blinkit and Swiggy Instamart, who promise to deliver groceries to customers within 15 to 20 minutes.
Several employees are recruited in these dark stores, which are typically situated within close radius from where a customer orders. The stores are basically local stores without customers. When a customer makes an order, dark store staff picks and packs the items immediately available in the stock and ship the order directly to the customer’s given address.
Zomato CEO Deepinder Goyal in June said, “Time optimisation happens in the supply chain and at dark stores, and never on the road. The fulfillment of the quick delivery promise relies on a network of dense dark stores, which serve customers who are only 2-3 kms away. This means an average travel time of 7-9 mins through shorter and defined routes, at a nominal bike speed of 20 kmph.”
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