Fast food giant Zepto will spin off its coffee business, Zepto Cafe, into a separate app starting next week, as part of the company’s move to expand the service.

Currently, Zepto operates its cafe service only in Mumbai and plans to expand it to 120 across different cities including Delhi NCR, Bengaluru, Hyderabad, Chennai and Pune among others.

To compete with Zepto’s coffee service offering, Swiggy has launched ‘Café’ in a few locations in Bengaluru, while Blinkit is also gearing up to roll out a café feature in pilot mode in select cities soon.

Fast trading giant Zepto is turning its coffee business, Zepto Cafe, into a separate app starting next week, as part of the company’s move to expand the service.

Aadit Palicha, co-founder and CEO of Zepto, said in a LinkedIn post: “We are launching a separate app for Zepto Cafe next week. The team delivers an MVP and iterates quickly, so it may not be perfect on day one, but it’s worth launching quickly.

Inc42 has contacted Zepto for comment on the development. The story will be updated based on the response.

Zepto Café launched in 2022, with a mix of branded and unbranded food products. This vertical has increased average order value as users order drinks and snacks along with their groceries.

The service offers 148 items, including drinks and snacks with a 10-minute delivery promise. The menu includes chai, coffee, breakfast options, pastries and savory snacks.

Recently, Zepto announced plans to expand its coffee service in major cities on the back of achieving an annualized revenue run rate of INR 160 Cr from 15% of its dark store network.

Currently, Zepto operates its cafe service only in Mumbai and plans to expand it to 120 across different cities including Delhi NCR, Bengaluru, Hyderabad, Chennai and Pune among others.

To compete with food delivery major Zepto’s coffee service offering Swiggy launched “Café” to deliver snacks and drinks in less than 15 minutes, which is currently available in a few locations in Bangalore, while its Zomato-owned rival, Blinkit is also preparing to deploy a cafe is in pilot mode in some cities, offering quick snacks such as samosas and sandwiches.

This development comes at a time when the battle for rapid commerce is intensifying with emerging market players.

For example, e-commerce giant Amazon prepares to pilot its fast commerce delivery service in India by the end of December, where it plans to deliver groceries and essentials to customers within 15 minutes, said Samir Kumar, Country Manager, Amazon India, he a day ago.

A few weeks ago, Inc42 also reported that PhonePe’s e-commerce platform Pincode pilots a fast delivery service in parts of Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad and Varanasi, under which it delivers groceries and other products within 10-20 minutes.