Rapid delivery was a response to consumer feedback, not a marketing gimmick: Zepto CEO Aadit Palicha

Zepto CEO Aadit Palicha revealed that the company’s foray into rapid delivery was not a marketing gimmick, but a direct response to consistent consumer feedback.

Speaking in a conversation with Garry Tan, CEO of startup accelerator Y Combinator, Palicha recalled that in Zepto’s early days—when he and his cofounders were making deliveries themselves—customers often complained about long wait times.

“People kept saying, ‘I’d rather buy from my fruit and vegetable vendor in the morning than wait 2–3 hours for you,’” Palicha said. This feedback pushed the company to gradually reduce delivery times, aiming to replicate the immediacy and convenience of neighborhood shopping.


“It’s not just about convenience; it’s about how customers are accustomed to buying more frequently and easily. This is why we gradually reduced delivery times to create a doorstep-like experience,” he added.

Founded by two Stanford dropouts, Zepto has become a key contender in the quick commerce space, competing with Zomato's Blinkit and Swiggy's Instamart.

Quick commerce rise

ET reported in February that the monthly cash burn for Indian quick commerce companies, including new entrants, has stormed to nearly Rs 1,300-1,500 crore, indicating the fierce fight to win users in a highly competitive space.

Beyond convenience, Palicha said 10-minute delivery became a necessity due to India’s unique urban consumption patterns. “You have smaller households, limited use of four-wheelers, and lower disposable cash. People buy perishables more frequently and in smaller quantities,” he explained. “It’s not just convenience—it’s essential.”

The escalating cash burn coincides with heavy fundraising by the top three players — Zomato-owned Blinkit, Zepto and Swiggy Instamart have raised nearly $3 billion.

In an interview with PTI, Zepto’s Palicha said the year 2025 is when quick commerce is set to reach a scale where it becomes comparable to traditional ecommerce regarding market impact and consumer adoption.

Pivot

Palicha acknowledged that Zepto’s original offering—a pickup and drop-off service—failed to retain users. “Before we switched to the first-party model, we did an honest assessment of the business and realised there was no retention with the pickup and drop-off service,” he recalled.

“We were struggling, and there was a point where we honestly thought we were done. We had tried everything and didn’t know what to do next.”

Looking ahead, Palicha stressed that operational excellence and talent remain Zepto’s foundational pillars. “We’ve made our share of mistakes, but we’ve learned from them. Today, talent is our most fundamental input,” he said.

Zomato founder Deepinder Goyal echoed a similar focus on team-building. In February, he posted a hiring update for a chief of staff position, emphasising the importance of selecting individuals who possess a long-term mindset and understand the value of “compounding impact.”