Cloud Kitchens Enable Hub-and-Spoke Delivery

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Sebastian Mejia, co-founder of Rappi, on building for multi-verticality in on-demand

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Cloud kitchen changes the underlying logistics operation from a point-to-point model to a more efficient hub-and-spoke model.
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Cloud kitchens matter because they turn delivery from a series of one off restaurant pickups into a denser local network that can carry more orders per courier hour. For Rappi, that means concentrating food production in known hotspots, helping restaurant partners open delivery only capacity without a full new storefront, and making batching easier because multiple orders can leave from the same node instead of many scattered kitchens.

  • In the usual marketplace model, every order starts at a different restaurant, so the courier spends time riding to pickup points and waiting for food. Rappi describes dark kitchens as a way to shift that into a hub model where couriers can stack orders on similar routes, which lowers delivery cost per order.
  • Rappi set up more than 300 dark kitchens run by existing restaurant partners, not only owned brands. That makes the kitchen network both a logistics asset and a merchant growth product. A restaurant can test a new neighborhood using shared kitchen space, while Rappi gets more concentrated order flow in zones where demand is already proven.
  • This is the same basic playbook seen across delivery and quick commerce. Swiggy Access was built to let restaurants reach new areas without opening dine in locations, and broader online grocery research shows vertically integrated nodes improve economics when they raise drops per trip and spread fixed delivery work across more orders.

The next step is a city map built around owned or coordinated fulfillment nodes, not just merchant discovery. As more food, grocery, and convenience volume flows through these hubs, the winning platforms should look less like listing apps and more like local operating systems that decide where supply sits, how orders are bundled, and which merchants scale fastest.