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Zepto Introduces Platform Fee to Drive Profitability

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Quick commerce startup Zepto implements a platform fee of INR 2 per order alongside existing handling charges, aiming to bolster profitability and diversify revenue streams amidst mounting losses.

According to a Zepto spokesperson, the company prioritizes operational efficiency and cost reduction to achieve profitability, rather than solely depending on delivery charges. However, it remains unclear whether these fees apply to all users uniformly.

The introduction of platform fees aligns Zepto with industry giants Swiggy and Zomato, both of which levy similar charges in addition to handling fees. Unlike its competitors, Zepto has opted for a dual-pronged approach, implementing both handling and platform fees.

In a strategic move to attract and retain users, Zepto recently unveiled the Zepto Pass membership program. Priced at INR 99 per month, the subscription offers unlimited free deliveries for orders exceeding INR 99. This initiative mirrors services such as Swiggy One and Zomato Gold memberships.

Despite its revenue growth trajectory, Zepto reported a significant surge in losses, amounting to INR 1,272.4 Cr in FY23. Nevertheless, the company remains optimistic about achieving EBITDA profitability by 2024.

In tandem with its profitability goals, Zepto has accelerated plans to relocate its base to India and aims to relist on Indian bourses by 2026. These strategic maneuvers underscore Zepto’s commitment to establishing a sustainable business model and expanding its market presence in the rapidly evolving quick commerce landscape.

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