I bought the usual logic: qcom food = low-fatigue, fast checkout, zero clutter. So keep it separate from the marketplace, right? Sharper positioning for different consumer needs.
Seemed logical. But it’s not the full story.
You see, when Zomato/Swiggy launch private labels - there is one organization that gets highly upset > National Restaurant Association of India (NRAI).
Their argument? Zom/Swig use resturants data to move consumers to their pvt labels.
With the crazy growth of qcom grocery, Deepinder & Sriharsha know that qcom food is not a fad - it will command a large share in the future and on that day, they don't want NRAI lawyers to come banging their doors, alleging of unfair practices. That could be a big blow to both "public" companies.
And that's exactly the reason why Zepto is keeping Zepto Cafe inside the main app. The benefit of cross-selling & AOV enhancement is massive, especially with such low value/margin businesses.
So next time someone says ‘It’s just branding’, hit them with the real story!
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