Zepto introduces India's first platform fee for quick groceries

🥇 First for fees

Zepto, the rising star of quick commerce in India, is trying a new tactic: platform fees.

Unlike its competitors, Blinkit and Swiggy Instamart, who rely solely on handling fees, Zepto is testing a ₹2 platform fee on orders for some users.

While Blinkit and Swiggy Instamart charge platform fees on food deliveries, Zepto is the first to implement it for groceries.

💸 What else does Zepto charge for?

This ₹2 fee joins Zepto's existing charges which includes:

• Handling fees (ranging from ₹5-20)

• Delivery fees (between ₹5 and ₹28)

• "Small cart" fee for orders under ₹100

• Surge fee during peak times.

However, Zepto is also offering a counterpoint to these additional charges: the Zepto Pass membership program.

• It has an introductory price of ₹19

• Zepto hit 1 million Pass subscribers within a week

🔎 Looking ahead

So, why the platform fee despite the membership option? Zepto believes profitability shouldn't hinge solely on delivery fees.

They aim to achieve this through efficient operations and cost reduction. The platform fee, along with the membership program, seems to be a two-pronged approach to achieve this goal.

Customers who order frequently can benefit from the pass, while others can still use Zepto with the additional platform fee.