Zepto introduces platform fee. How much will it cost you? Will Blinkit do it?

Currently, Zomato-owned Blinkit and Swiggy Instamart- Zepto's competitors- don’t levy a fee on grocery orders. What is Zepto's plan?

Zepto introduced a platform fee becoming the first quick-commerce company to do so. The fee is ₹2 per order and will apply to a select set of users. Currently, Zomato-owned Blinkit and Swiggy Instamart- Zepto's competitors- don’t levy a fee on grocery orders but collect a platform fee from customers who place food delivery orders.

Zepto has introduced platform fee, a first to do so. What does it mean for customers? Details here

Do quick-commerce companies charge fees?

All of these companies began by charging a nominal fee of ₹2 which they increased in some cases and during peak times could even be ₹10 to gain from surge in demand. Zepto could also test a higher fee in the future.

What are Zepto's additional charges?

A platform fee isn’t the only additional charge Zepto is levying as the company collects a ‘late night handling fee’ of ₹15 on orders placed after 11pm in certain cases. Zepto now charges anywhere between ₹5 and ₹28 as delivery fee but deliveries were initially free for cart values above ₹99 or ₹199. This depended on the transaction frequency of customers.

What company said on the decision?

Zepto spokesperson said, “We don’t believe in being over dependent on delivery fees to be profitable. We believe in core operating efficiency and cost reduction to be profitable. We are on track to achieve the EBITDA positive milestone even with much lower delivery fees- Zepto Pass is the quintessential example of this.”

What is Zepto's market share?

Zepto is the third-largest quick commerce player with a market share of about 20 per cent. Zomato’s Blinkit's share is 40 percent while Swiggy Instamart is at 37-39 per cent, analysts at Bernstein said in a report in January.