Zepto Introduces INR 2 Platform Fee to Boost Profitability

• ByStartupStory     |    March 14, 2024

In a strategic move aimed at enhancing profitability, Zepto, the quick commerce startup, has initiated the rollout of a nominal platform fee of INR 2 per order for its users. This fee, coupled with existing handling charges ranging from INR 5 to INR 20 depending on various factors, aims to diversify revenue streams while bolstering the company’s bottom line.

A spokesperson for Zepto emphasized the company’s commitment to sustainable profitability through operational efficiency and cost reduction, stating, “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.”

The introduction of platform fees aligns Zepto with industry giants like Swiggy and Zomato, which have successfully implemented similar charges within their food delivery verticals. However, unlike competitors Blinkit and Swiggy Instamart, Zepto has ventured into experimenting with platform fees in addition to handling charges.

Furthermore, Zepto recently unveiled its membership program, Zepto Pass, starting at INR 99 per month, offering unlimited free deliveries on orders exceeding INR 99. This move mirrors strategies employed by Swiggy One and Zomato Gold, underscoring Zepto’s efforts to remain competitive in the market.

Despite its innovative strategies, Zepto continues to grapple with losses, with FY23 witnessing a significant increase in losses to INR 1,272.4 Cr, albeit accompanied by a substantial rise in operating revenues to INR 2,024.3 Cr.

With eyes set on meeting EBITDA profitability targets in 2024, Zepto is accelerating plans to relocate its headquarters to India and aims to list on the Indian bourses as early as 2026.

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