Palicha: 10-Minute Delivery Has Better Economics Than 2-to-4-Hour Models
Aadit Palicha · How Zepto Became India’s Fastest Growing Startup · Y Combinator · Apr 18, 2025 · at 1:42
Aadit Palicha, co-founder and CEO of Indian quick-commerce unicorn Zepto, discusses why full-stack ultra-fast delivery outperforms slower delivery models economically.
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“The insight was, yes, let's do 10 minute delivery, but also let's build out the full stack of commerce where we're able to run the logistics, we're able to Have a much better sense and selection on quality control and sort of that audacious thinking Put us in a position where not only will we be able to build a better product for users, but over time and now sort of what's playing out is that if you build a better product for users, you also end up with a better P&L and a better economics, right? So if users love the platform, your CAC is lower, the throughput you're able to get into your supply chain is much higher, your costs come down, and now we're basically seeing like the economics play out pretty beautifully better than like the two R and four R models because of how sticky the users are.”
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Palicha: 10-minute delivery in India is a necessity, not just convenience
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Palicha: 70% of Zepto markets profitable, mature markets at 4-5% EBITDA
“70% of our markets are profitable. The most mature markets are touching four to five percent EBITDA.”
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“We've got an opportunity to build, you know, the largest, you know, grocery player in India, which it's, is a seven hundred billion dollar market, right? And so if I'm in that position, we can easily build 20, 25, thirty billion of top line,”