Research by: Sk Abu Khalek, Bishal Dey Sarkar, Tamal Samanta, & Sandeep Puri
Abstract
In May 2025, Zepto Marketplace Private Limited (Zepto), one of India’s fastest-growing quick commerce (q-commerce) start-ups known for its 10-minute delivery promise, faced a major regulatory and reputational crisis when the Maharashtra Food and Drug Administration shut down a dark store (a compact local warehouse) in Mumbai, India, due to severe food safety violations. The incident revealed expired products, poor hygiene, and non-functional cold storage, sparking public outrage and eroding consumer trust. Despite its rapid growth and vast network of over 1,140 dark stores, the franchise-led model exposed critical gaps in governance and compliance. This case encourages students to explore the trade-offs between speed, safety, and trust, and assess how Zepto can recover, rebuild its brand, and become a leader in food safety.
Learning Objectives
This case study can be used in undergraduate and master of business administration courses such as strategic management, business ethics, brand management, and operations management. It offers rich insights into the trade-offs between speed and safety, governance in franchise models, crisis response, and consumer trust. The case encourages critical thinking on sustainable growth, brand recovery, and responsible innovation in fast-scaling digital businesses. After working through the case and assignment questions, students will be able to do the following:
- Evaluate the long-term viability of disruptive business models in high-growth sectors, particularly under external regulatory and operational constraints.
- Understand and articulate the operational trade-offs between delivery speed, service quality, and consumer safety in a high-pressure, hyperlocal logistics model.
- Explore how operational governance—especially in franchise-heavy or decentralized networks—can be structured for better control, accountability, and risk mitigation.
- Assess the impact of operational failures on brand equity and trust, and to formulate strategic communication and recovery plans to regain consumer confidence.
- Explore how organizations can transform reputational crises into strategic opportunities by leading reforms and setting industry standards.
To cite this case:
Khalek, S.A., Dey Sarkar, B., Samanta, T., & Puri, S. (2025). Zepto’s 10-minute model faces trust and compliance test. Ivey ID: W46047. London, Canada: Ivey Publishing.
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