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Eye On Profitability? Zepto Experiments With INR 2 Platform Fee

Inc42 · 1y ago

Eye On Profitability? Zepto Experiments With INR 2 Platform Fee

Quick commerce startup Zepto has introduced a platform fee of INR 2 per order, along with separate handling charges ranging from INR 5 to INR 20. The move aims to bolster profitability by creating additional revenue streams, following the examples of Swiggy and Zomato. Zepto also offers a membership program called Zepto Pass, starting at INR 99 per month, which provides unlimited free deliveries on orders above INR 99. The company is working towards achieving EBITDA profitability in 2024 and plans to list on the Indian bourses by 2026.

Related News

India's Zepto becomes the first quick commerce unicorn to introduce platform fee of Rs 2

IndianStartupNews

IndianStartupNews · 1y ago

India's Zepto becomes the first quick commerce unicorn to introduce platform fee of Rs 2

Indian quick commerce startup Zepto has introduced a platform fee of Rs 2 per order as part of its effort to increase profitability. The company has also ended free deliveries for some users and implemented delivery fees based on order value. These fees, along with handling fees, surge fee, and cart fee, aim to diversify Zepto's revenue streams beyond just delivery fees. Additionally, Zepto has launched a membership program called Zepto Pass, offering unlimited free deliveries for orders above Rs 99. Despite experiencing significant revenue growth in FY23, the company aims to achieve EBITDA profitability and reduce losses.

IPO-bound Swiggy shrugs off plans on doubling platform fee in near term

Inc42 · 1y ago

IPO-bound Swiggy shrugs off plans on doubling platform fee in near term

Swiggy has denied reports of doubling its platform fee on food orders, stating that it has no such plan for the near future. Speculations were rife that the food delivery aggregator would increase the fee from INR 5 to INR 10 to offset losses ahead of its upcoming IPO. The company clarified that it constantly experiments with offerings to understand user preferences and improve affordability. Swiggy's archrival, Zomato, recently raised its platform fee from INR 3 to INR 4. Swiggy's IPO is anticipated to take place in mid-2024.

Zepto experiments with platform fees in profitability push

Economic Times

Economic Times · 1y ago

Zepto experiments with platform fees in profitability push

Quick-commerce company Zepto is experimenting with platform fees in addition to handling charges and delivery fees as a way to improve profitability. Unlike its competitors, Blinkit and Swiggy Instamart, which only charge handling fees, Zepto is charging a platform fee of Rs 2 per order in addition to handling charges that range between Rs 5 to Rs 20. Zepto believes in core operating efficiency and cost reduction to be profitable and is on track to achieve positive EBITDA in the next two-and-a-half quarters. They recently introduced a membership program called Zepto Pass, which offers free delivery for orders over Rs 99 and discounts on orders above Rs 399.

Zepto Experiments Membership Programme ‘Zepto Pass’, Offers Unlimited Free Deliveries

Inc42 · 1y ago

Zepto Experiments Membership Programme ‘Zepto Pass’, Offers Unlimited Free Deliveries

Quick-commerce unicorn Zepto is testing a membership program called Zepto Pass, available at a price of INR 99 per month. The membership offers unlimited free deliveries on orders over INR 99, with discounts of up to 20% on selected orders. Some users may receive discounts on orders over INR 299, while others will require a minimum purchase order of INR 699. Zepto is also offering the membership at an introductory price of INR 19 for targeted users. The company aims to improve customer experience by running experiments but declined to comment further.

Zepto’s FY24 Revenue More Than Doubles To INR 4,454 Cr

Inc42 · 7m ago

Zepto’s FY24 Revenue More Than Doubles To INR 4,454 Cr

Zepto, a quick-commerce platform, saw a significant increase in operating revenue by 120% in the past year, reaching INR 2,025.70 Cr. However, the net loss for the company decreased slightly by 2% to INR 1,248.64 Cr. Zepto's CEO, Aadit Palicha, expressed optimism for continued growth and expects to achieve profitability in the near future.

Zomato Shares Jump Over 5% Amid Block Deal Buzz

Inc42 · 1y ago

Zomato Shares Jump Over 5% Amid Block Deal Buzz

Zomato shares saw a rally, hitting INR 99.50 per share on the BSE. Around 10 crore shares, equal to a 1.17% stake in the company, were traded in a block deal at an average floor price of INR 94.70 per share, totaling about INR 947 crore. Investment firm Tiger Global exited by selling 12.24 crore shares, worth INR 1,123.84 crore, while SoftBank was reportedly considering selling additional shares. Zomato posted a Q1 FY24 consolidated profit of INR 2 crore and expanded its platform fee to achieve profitability.

Exploring the Rising Trend of Platform Fees in Delivery Apps

StartupTalky

StartupTalky · 1y ago

Exploring the Rising Trend of Platform Fees in Delivery Apps

Zomato and Swiggy, two major players in the food delivery industry in India, have raised their platform fees by 33% from INR 3 to INR 4 per order. This increase in fees aligns with the companies' efforts to enhance profitability and sustain their business models. Additionally, Zepto, a rising competitor in the fast commerce space, has also implemented platform fees starting at INR 2 per order. These fees are part of the companies' strategies to achieve financial gain and ensure long-term profitability. Other players in the industry, such as Uber, BigBasket, and Myntra, are also introducing additional charges to improve their revenue streams.

Platform fees are everywhere, and online customers don't mind

Livemint

Livemint · 1y ago

Platform fees are everywhere, and online customers don't mind

E-commerce platform Myntra has increased its platform fee by one-third to ₹20 per order. This fee increase has been quietly accepted by consumers, indicating a shift from discount-focused shopping behavior to a more discerning approach. The acceptance of platform fees signifies the maturing of the Indian online consumer, allowing e-commerce companies to now focus on metrics such as unit economics and profitability. Other platforms like Nykaa Fashion, Swiggy, Zomato, and Zepto have also introduced platform fees in the past year. This shift is crucial for the sustainability and profitability of the e-commerce sector in India.

Zomato collected Rs 83 cr in platform fee from customers till March

YourStory

YourStory · 1y ago

Zomato collected Rs 83 cr in platform fee from customers till March

Food delivery aggregator Zomato has collected Rs 83 crore through its platform fee on orders from August 2023 to March 2024, according to the company's annual report. The platform fee is cited as one of the key factors driving Zomato's Adjusted Revenue, which grew 27% year-on-year to Rs 7,792 crore in FY24. Zomato began charging a platform fee of Rs 2 per order in August, which has since been increased to Rs 6 in key markets. The introduction and increase in platform fee is part of Zomato's strategy to enhance profitability, similar to its rival Swiggy.

Consumer internet companies charge per order fees to up margins

Economic Times

Economic Times · 1y ago

Consumer internet companies charge per order fees to up margins

Consumer internet platforms like Uber, BigBasket, Zomato, and Swiggy are now charging per order fees to optimize unit economics and increase profitability. Uber is imposing a distance-based 'booking fee' on its cab services, while BigBasket has introduced a Rs 5 handling charge on its quick commerce platform. Zomato and Swiggy already charge a platform fee of Rs 2 on food delivery orders. These charges aim to cover operational costs and reflect the cost of providing convenience to customers.

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