Zepto removes handling, surge fees from all orders weeks after $450 million funding boost
Quick commerce platform Zepto has removed the handling fee and surge charge from all its orders as well as reduced the minimum order value to Rs 99 for free delivery, weeks after closing a $450 million funding round.
Under its ‘All new Zepto experience,’ the company is advertising its ‘zero handling fee,’ ‘zero delivery fee (for orders above Rs 99),’ and ‘zero rain and surge charge.’ Earlier, Zepto levied a handling charge “towards handling of products in your orders at our stores.”
Meanwhile, rival Blinkit charges a Rs 11 handling fee on orders and a delivery fee of Rs 30 on orders below Rs 199. For Instamart, the handling fee is Rs 9.8, and the delivery charge is Rs 30 for orders below Rs 199. This is besides the other fees and charges, such as the rain fee and surge charge.
Now, Zepto has positioned itself as the quick commerce platform offering the lowest price.
ET had reported on October 18 that Zepto’s $450 million round is likely to increase competition and intensify cash burn in the industry, as platforms focus on expanding and discounting.
Experts noted that as competition intensifies in the sector, discounting will continue and, in fact, increase in the coming months.
In June, ET had reported about platforms adding a range of fees — from platform and handling charges to convenience, small-cart, and rain levies — to customer orders in an attempt to shore up their unit economics, or earnings from each transaction. These ranged between Rs 6 and Rs 30 per order.
Over the past few months, Zepto has been under scrutiny by users for allegedly employing dark patterns in its app.
Under its ‘All new Zepto experience,’ the company is advertising its ‘zero handling fee,’ ‘zero delivery fee (for orders above Rs 99),’ and ‘zero rain and surge charge.’ Earlier, Zepto levied a handling charge “towards handling of products in your orders at our stores.”
Meanwhile, rival Blinkit charges a Rs 11 handling fee on orders and a delivery fee of Rs 30 on orders below Rs 199. For Instamart, the handling fee is Rs 9.8, and the delivery charge is Rs 30 for orders below Rs 199. This is besides the other fees and charges, such as the rain fee and surge charge.
Now, Zepto has positioned itself as the quick commerce platform offering the lowest price.
ET had reported on October 18 that Zepto’s $450 million round is likely to increase competition and intensify cash burn in the industry, as platforms focus on expanding and discounting.
Experts noted that as competition intensifies in the sector, discounting will continue and, in fact, increase in the coming months.
In June, ET had reported about platforms adding a range of fees — from platform and handling charges to convenience, small-cart, and rain levies — to customer orders in an attempt to shore up their unit economics, or earnings from each transaction. These ranged between Rs 6 and Rs 30 per order.
Over the past few months, Zepto has been under scrutiny by users for allegedly employing dark patterns in its app.
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