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Quick commerce platform Zepto has eliminated all handling fees and surge charges while significantly reducing its minimum order value for free delivery. This move comes just weeks after the company closed a substantial $450 million funding round.According to a report by The Economic Times, under its newly launched ‘All new Zepto experience,’ the company is now advertising zero handling fees, zero rain and surge charges, and zero delivery fees for all orders above Rs 99. Previously, Zepto levied a handling charge described as covering the “handling of products in your orders at our stores.”
Intensifying price war in quick commerce market
The move positions Zepto as the lowest-cost quick commerce platform in the market, applying direct pressure on its main competitors, the report suggested, adding that rival platforms continue to charge various service fees.Blinkit charges an Rs 11 handling fee and a Rs 30 delivery fee on orders below Rs 199. Meanwhile, Instamart applies a Rs 9.8 handling fee and a Rs 30 delivery fee for orders below Rs 199. Both platforms also levy additional charges like rain and surge fees.The market shift was anticipated following Zepto’s recent funding, which industry experts predicted would escalate competition and intensify the use of discounting across the sector.
Media reports from October 18 suggested the funding would increase cash burn as platforms focus on expansion and price competition. Experts predict discounting will continue and likely increase in the coming months.Zepto's latest change reverses a trend observed earlier this year. In June, industry reports highlighted that quick commerce platforms had collectively added a range of fees—including platform, handling, convenience, and small-cart levies—to customer orders. These fees, which generally ranged between Rs 6 and Rs 30 per order, were an attempt by companies to improve their unit economics and increase earnings from each transaction.
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