No Fees, No Surges: Zepto Promises Cheaper Deliveries

Quick-commerce platform Zepto has scrapped handling charges, surge fees, and delivery fees for orders above Rs 99, riding the momentum from a recent $450 million funding round. While the immediate benefit is cheaper orders for consumers, the more consequential story is how this aggressive pricing move sharpens the industry’s fight over unit economics, cash burn and customer retention — not just market share.

Under the newly promoted All-new Zepto experience, the company advertises zero handling fees, zero rain and surge charges, and zero delivery fees for orders above Rs 99. The company also communicated the change via WhatsApp to customers. Previously, Zepto — like many quick-commerce players — applied a handling fee described as covering the "handling of products in your orders at our stores." With that removed, Zepto positions itself as the lowest-cost quick-commerce option in the market.

How rivals compare

Local competitors continue to levy fees that reduce short-term affordability for small orders. According to the figures provided in the brief:

• Blinkit charges an Rs 11 handling fee plus an Rs 30 delivery fee on orders below Rs 199.

• Instamart applies a Rs 9.8 handling fee and a Rs 30 delivery fee for orders below Rs 199.

Those existing fee structures mean Zepto’s new threshold of free delivery above Rs 99 can undercut competitors on many everyday baskets—a clear tactical move on price.

The timing follows a substantial $450 million raise reported in media coverage earlier this month. Industry commentary included in the brief suggested the fresh capital created room for more aggressive promotions. However, funding-fuelled discounting has two sides: it can rapidly expand market share, yet it can also accelerate cash burn. Several media reports cited industry expectations that the round would lead to increased spending as platforms pursue expansion and target price-sensitive users.

This isn’t just cheaper delivery. It signals a shift in the competitive calculus of quick commerce:

• Customer acquisition vs. retention: Lower fees reduce friction for first-time buyers and small baskets, increasing transaction frequency. But sustaining repeat customers depends on fulfillment consistency and speed — not only price.

• Unit economics pressure: Removing per-order fees puts more emphasis on order density, average basket size and operational efficiency in micro-fulfillment centers.

• Price signalling: By setting a lower free-delivery threshold (Rs 99), Zepto forces rivals to choose between matching prices, protecting margins, or differentiating via service or partnerships.

For urban shoppers buying everyday staples or last-minute ingredients, the immediate outcome is clear: small orders that previously attracted handling or delivery charges become more economical on Zepto. For example, any essentials that previously fell below a Rs 199 free-delivery trigger — and therefore carried an extra Rs 30 delivery fee elsewhere — would now qualify for free delivery on Zepto if they crossed Rs 99, changing the comparative calculus for those orders.

Zepto’s move accelerates a maturation test for quick commerce: whether market share gains bought by capital can be converted into sustainable revenues without perpetual subsidy. For consumers, the immediate win is lower out-of-pocket costs on frequent small baskets. For investors and operators, the real test will be whether higher order volumes translate into improved margins, not just top-line growth.