Not Blinkit Or Swiggy, Zepto Becomes First E-commerce Company To Introduce Platform Fee

Zepto has become the first quick e-commerce company to begin charging a platform fee. A limited group of users are subject to a fee of Rs 2 per order. So far, slightly more developed industries like e-commerce and food delivery have seen a higher prevalence of platform fees.

Zepto Becomes First E-commerce Company To Introduce Platform Fee

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Zepto's introduction of platform fees comes at time when its direct competitors Blinkit (owned by Zomato) and Swiggy Instamart do not charge a similar fee for grocery orders.

However, customers who order food from Zomato and Swiggy are charged a platform fee. While they first charged a small fee of Rs 2, they have since raised the price in some cases as adoption has increased. Some have even hinted at charging a much higher fee¡ªRs 10¡ªduring peak hours to take advantage of the spike in demand, suggesting that there's a chance Zepto will test a higher fee in the future.

Zepto Also Charges Late Night Fee Of Rs 15

zepto platform fees/moneycontrol

Zepto also charges its customers additional fees in addition to a platform fee. In some circumstances, the company additionally charges a "late night handling fee" of Rs 15 for orders placed after 11 p.m.

Additionally, the company no longer offers free delivery to certain customers. In order to increase the profitability of each order and reach its goal of becoming EBITDA profitable by May 2024, it currently charges a delivery fee that ranges from Rs 5 to Rs 28 depending on the value of the cart. Initially, deliveries were free for cart values over Rs 99 or Rs 199, depending on how frequently customers made purchases.

"We Don't Believe In Being Overdependent On Delivery Fees"

"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," a spokesperson from Zepto said, as per Moneycontrol report.

According to a January report by Bernstein analysts, Zepto is the third-largest player in quick commerce, with a market share of roughly 20%, behind Zomato's Blinkit (40%) and Swiggy Instamart (37¨C39%).

Weeks after the company introduced Zepto Pass, its loyalty program, which offers better discounts and free delivery, the company has incurred additional costs. During Zepto Pass's pilot phase, the company claims that users have increased their monthly spending on the app by more than thirty percent.

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