When planning to launch a food delivery business, many startups turn to a food delivery app development company to bring their ideas to life. But not all ideas, even when executed with the best technology, are guaranteed to succeed. The short-lived venture of Zomato’s 10-minute delivery service, called “Zomato Instant,” is a prime example of ambition outrunning practicality. It’s a case every entrepreneur and developer should study.
While many providers—including experienced platforms like Appkodes—offer scalable and flexible food delivery solutions, the product’s success ultimately depends on realistic goals, market understanding, and operational execution. Let’s dive into what went wrong with Zomato Instant and the lessons every startup can take from its crash.
The Rise and Fall of Zomato Instant
In March 2022, Zomato announced “Instant,” promising food delivery in just 10 minutes. The initiative grabbed headlines and triggered curiosity across the tech and food delivery landscape. But by April 2023, Zomato silently shelved the project.
This wasn’t a startup trying to test the waters—it was a unicorn with a huge user base, advanced tech infrastructure, and significant funding. Still, Instant didn’t last even a full year.
What went wrong?
1. Speed Over Substance: The Operational Bottlenecks
The core selling point—10-minute delivery—was flawed from the start. Zomato aimed to achieve it by pre-positioning popular food items in strategically located “finishing stations,” essentially mini-kitchens or cloud kitchens. But this model created massive challenges:
- Limited menu variety due to the need for pre-cooked items.
- Quality inconsistencies because food was prepared in bulk and reheated.
- Inventory risks if demand predictions were off.
- Pressure on delivery partners who were now under even tighter time constraints.
Lesson for startups: Speed is valuable, but never at the cost of product quality or employee welfare. Your delivery model should optimize convenience and maintain experience. Building your app with features like predictive ETAs and real-time tracking is smarter than making unsustainable promises.
2. Misreading the Market Need
Zomato assumed that users would value 10-minute delivery over other aspects like food freshness, customization, and safety. However, food isn’t the same as delivering groceries or packages. People care about how their meal tastes—not just how fast it arrives.
Quick commerce works for items with no emotional or sensory value (think toothpaste, snacks, etc.), but food is emotional, experiential, and subjective.
Lesson for startups: Validate your core assumption. Speed may sound attractive, but users prioritize reliability and quality. Instead of aiming for “fastest,” aim for “best experience.” And that begins by working with a food delivery app development company that enables deep analytics, order preferences, and smart reordering—not just speed.
3. Cost vs. Scalability Conflict
Zomato Instant’s infrastructure was costly. Setting up local finishing stations, hiring and training staff, ensuring compliance, and managing perishable inventory—all for a narrow menu—was not scalable. Profits suffered due to low margins and high waste.
Lesson for startups: Always prioritize unit economics over market buzz. Even if your food delivery app is feature-rich, your business model must be lean and expandable. Think scalable—not splashy.
Apps that integrate seamlessly with multiple vendors, support modular updates, and have logistics-friendly APIs help keep costs manageable. That’s why working with a tech partner who understands both the technical and commercial layers is key.
4. Delivery Partner Backlash
Perhaps the most controversial part of Zomato’s 10-minute ambition was the perceived pressure it placed on delivery partners. Despite Zomato’s claim that no one was being incentivized to break traffic laws, the public and delivery fleet reacted negatively.
Lesson for startups: Your delivery force is not just an asset; they’re your brand ambassadors. Apps today must have ethical route optimization, generous buffer times, and support features for drivers—not just customers.
Working with developers who include partner-friendly dashboards, emergency alerts, and performance-based earnings can help balance company goals and rider welfare.
5. Public Sentiment and PR Fallout
Zomato received major backlash online. Critics questioned the safety, feasibility, and morality of the service. The outrage went viral, with hashtags and memes targeting the company’s decision-making.
Lesson for startups: In food delivery, perception is everything. Don’t underestimate the power of user sentiment. Every feature, promise, or campaign should be designed with transparency and empathy.
Even your app notifications, estimated delivery messaging, and customer support tone influence public trust. A skilled app development company will build in systems for feedback collection, public reviews, and reputation management, helping startups stay ahead of potential PR issues.
So, What Should a Food Delivery Startup Do Instead?
Instead of following the hype of ultra-fast delivery, founders and startups should focus on building:
- Reliable delivery networks with accurate ETAs
- Smart menu algorithms based on local demand
- Integrated cloud kitchen partnerships
- Personalized loyalty systems
- Flexible order scheduling
- Dynamic pricing and location-based promos
Most of all, they need a tech foundation that evolves with them—whether they start with 5 kitchens or scale to 50,000 users. Look for app solutions that are modular, scalable, and robust across devices.
How Technology Partners Can Make or Break You
Startups don’t fail only because of bad ideas—they fail because their execution couldn’t keep up. Choosing the right food delivery app development company is often the first make-or-break decision for a new business.
Platforms like Appkodes have quietly helped brands build tailored food delivery solutions that aren’t just clones of popular apps—they’re built with purpose, customer insights, and operational logic. From cloud kitchen integration to geo-fencing and loyalty rewards, startups can get a head start without reinventing the wheel.
Final Thoughts: Bigger Isn’t Always Smarter
Zomato’s Instant service wasn’t a bad idea—it was a rushed idea. It came from a place of competition, not customer need. For food delivery startups, the lesson is clear:
Don’t try to outpace the giants by copying them. Instead, learn from their mistakes, build systems that are sustainable, and partner with development companies that offer smart, scalable solutions—not gimmicks.
Your goal isn’t just to deliver food. It’s to deliver consistency, delight, and value—one order at a time.