Deepinder Goyal says 10-minute delivery model can change Food business

In an exclusive interview with MoneyControl, Zomato founder Deepinder Goyal disclosed that 10-minute food deliveries can be a game-changer in the quick commerce business.

He admitted Blinkit is comparatively fast but Zomato is slow. Often, Zomato delivers food parcels in certain areas in about 40 minutes which needs to be improved. 

The exclusive interview

In an hour-long conversation in Bengaluru, the entrepreneur explained that as customer expectations are escalating more restaurants will open up close to customer locations or start a 10-minute food format. “That could be the next big growth engine for restaurants,” Goyal said.

“Think samosas, patties, sandwiches, chai, coffee, nimbu paani (lime water) etc, being delivered in 10 minutes, could be the next frontier which restaurants haven't even attacked yet.” the Zomato startup founder remarked. “This is canteen type food but in an organised fashion. It's an interesting space. So, this could be the next big thing and this is canteen food for people who don't do and eat canteen right now, so it will be a whole new market and additional demand being created.”

In the interview, he also mentioned that Zomato Instant was not the right product-market fit (PMF). According to him, Zomato Everyday with its 10-minute delivery model is slightly better.

“We're adding some canteen type food to that (Zomato Everyday). Simple samosas, puffs, cream rolls and others which can be delivered in 1o minutes,” the Zomato CEO said.

Also read: Gurugram Mall takes action after Zomato’s Deepinder Goyal is denied a lift as undercover delivery agent (startuppedia.in)

A new player in quick commerce

Incidentally, Reliance Retail has also entered the quick commerce marketplace intensifying the competition between existing players. The key players in this industry are Zomato-owned Blinkit, Swiggy Instamart, and Zepto.

According to a report by the Economic Times, Reliance Retail has around 3,000 retail stores and is targeting to deliver most of its products in 10 to 15 minutes. 

Moreover, the company plans to bring a big challenge to existing players in the market by not charging any delivery, platform, or surge fees, irrespective of the order value.

Also read: Customer mocks, 'Soon Deepinder Goyal will be able to buy an airplane’ (startuppedia.in)