Zomato's 15-min service: What it means for food delivery market

Zomato has quietly introduced a 15-minute food delivery service in select cities, including Mumbai and Bangalore. Although the service has yet to be officially announced, users can already access it via a new "15-minute delivery" tab on the Zomato app. This feature focuses on quick-to-prepare meals and ready-to-eat options from participating restaurants within a two-kilometre radius, ensuring faster delivery times.

Experts believe that the introduction of the 15-minute delivery option may lead to an increase in platform charges across food delivery apps. Ashutosh Chaudharie, Consumer Marketing GM at VI-JOHN Group, observed: "Quick delivery is rapidly becoming the currency of the market, as it justifies the multiple surcharges these platforms already impose—and will likely increase further."

Food delivery giants Swiggy and Zomato have been steadily raising platform fees, a flat charge levied per order to boost revenue and profitability. Swiggy introduced the fee at ₹2 per order in April 2023, with Zomato following suit in August 2023. Over time, these charges have increased, with Zomato raising its platform fee from ₹6 to ₹10 during the festive season in October 2024 to maintain seamless services amidst high demand. Swiggy similarly increased its fee to ₹10, aligning with Zomato’s pricing strategy.

These platform fees are in addition to other costs like delivery fees, GST, restaurant charges, and handling fees, making them a significant contributor to the overall cost of food delivery.

A Growing Market

The quick-commerce market is projected to soar to $40 billion by 2030, driven by consumers' growing preference for faster deliveries. Approximately 46% of shoppers have shifted away from relying on conventional stores, highlighting the sector’s transformative impact.

Zomato’s move into this space reflects a broader industry trend. Chaudharie added: "Zomato's move is part of a broader trend among competitors, signaling a strategy aligned with industry announcements rather than a unique proposition. The real traction of such services will become evident in the days to come."

Inspiration from Blinkit

Zomato’s foray into this segment follows its sister brand Blinkit, which entered the quick-delivery space last December with the launch of Bistro. Currently piloted in parts of Gurugram, Bistro promises freshly prepared meals delivered in just 10 minutes. The menu includes popular items like samosas, burgers, rice bowls, pasta, desserts like cakes and brownies, and beverages such as tea, coffee, and smoothies.

To meet the demands of time-sensitive delivery, Bistro relies on strategically placed kitchens and an optimized delivery process, ensuring food arrives at the right temperature. This expansion aligns with Blinkit’s broader diversification efforts, which include large-order fleets and EMI options for high-value purchases.

Testing Speed and Reliability

The quick-commerce race has intensified, with platforms competing on speed and efficiency. A student at the Indian School of Business (ISB), Hyderabad, tested the delivery promises of leading platforms—Blinkit, Swiggy Instamart, and Zepto.

In the test, Blinkit promised to deliver two protein bars in 13 minutes, Swiggy Instamart estimated 21 minutes for milk, and Zepto claimed it would deliver paneer in just 8 minutes. The results, however, were mixed. Blinkit emerged as the fastest, completing the delivery in 15 minutes—only two minutes behind schedule. Swiggy Instamart followed, delivering in 20 minutes. Zepto, despite its ambitious 8-minute promise, faced logistical challenges and took 30 minutes to deliver. LLLLLLLLLLL

compiled all the videos
here’s how it went:
> @letsblinkit came first at 15 mins (slightly late on what was promised, but the delivery person was so happy, it made our day).
> @SwiggyInstamart followed at 20 mins – accurate timing and a super chill delivery guy.
> @ZeptoNow… pic.twitter.com/tohHmSkSH1

— Sneha (@itspsneha) January 7, 2025

What’s Next for Zomato?

Zomato’s entry into the 15-minute delivery space underlines its commitment to staying competitive in a rapidly evolving market dominated by players like Zepto Café and Swiggy Bolt. As quick-commerce services become central to consumer convenience, Zomato’s strategic focus on fast delivery options could strengthen its position in the food delivery landscape.

As brands continue to redefine consumer expectations, the race to deliver faster, fresher, and more diverse options shows no signs of slowing down.