Zepto scraps all handling, surge fees; How does it stack up against Instamart and Blinkit?

Quick commerce startup Zepto has scrapped all handling and surge fees across its platform and lowered the minimum order value for free delivery to ₹99, becoming the only major player in the segment to offer zero additional platform charges.

Under its new campaign, dubbed the “All New Zepto Experience”, customers will not have to pay any handling, rain or surge fees on any orders.

Deliveries will be free for orders above ₹99, while a ₹30 delivery charge will apply to smaller orders.

How does Zepto stack up against Blinkit and Instamart?

This marks a reversal from last year, when Zepto had introduced a ₹2 handling fee “towards handling of products in your orders at our stores.”

By eliminating platform-level fees, Zepto now stands apart from its rivals Swiggy Instamart and Zomato’s Blinkit, which levy ₹9.8 and ₹4 as handling fees, respectively. Blinkit and Instamart also charge ₹30 for deliveries below ₹199.

Zepto has additionally dropped small cart charges and convenience fees on orders under ₹99, including those involving cigarette and tobacco products, in what industry analysts view as an aggressive pricing strategy to boost order volumes.

How much does a small order really cost across platforms?

A Zepto customer ordering below ₹99 pays only a ₹30 delivery fee. On Blinkit, a similar order costs an extra ₹54, comprising ₹30 delivery, ₹20 small cart, and ₹4 handling fees. Instamart customers pay about ₹55 extra for such orders, including ₹30 delivery, ₹15 small cart, and ₹9.8 handling fee.

Swiggy has also launched a ‘No Fee November’ offer for Instamart, temporarily waiving delivery, handling and surge fees, but only for orders above ₹299.

The pricing revamp follows Zepto’s recent $450 million fundraise that valued the company at $7 billion. The round was led by new and existing investors, including US-based pension fund CalPERS, General Catalyst, Goodwater Capital, and Lightspeed Venture Partners.

“This is largely a primary infusion, and we are considering it a pre-IPO round,” Zepto Co-founder and CEO Aadit Palicha told PTI. “We now have approximately USD 900 million of net cash in the bank and are more than well-capitalised for the future.”

What’s next for Zepto?

Founded in 2021 by Stanford dropouts Palicha and Kaivalya Vohra, Zepto operates a network of dark stores promising grocery deliveries in minutes across major Indian cities. The company currently handles around 1.7 million orders per day, with most stores now profitable.

Palicha said Zepto plans to file its draft red herring prospectus (DRHP) in the coming quarters and expand its network by a few hundred more stores over the next year.