Quick commerce startup Zepto has rolled out a new platform fee where it will charge Rs 2 for every order to boost its profitability, based in India.
The company has also stopped offering free deliveries to some users and has introduced a delivery fee starting from Rs 5 to Rs 28 depending on the total order.
Unlike its rivals Zomato-owned Blinkit or Swiggy Instamart, which only float a handling fee, Zepto has with platform fees, entering a territory that’s more common in their food delivery segment. The shift is understood as an effort to mirror the revenue models of its peers as it is targeting EBITDA profitability by 2024.
In parallel to the platform fee, Zepto recently launched a membership program called Zepto Pass, priced at Rs 99 to Rs 299 a month, providing free unlimited deliveries on orders above Rs 99. The startup has made the program available at a discounted Rs 19 and has quickly garnered over 1 million subscribers.
Zepto experienced a remarkable expansion, with its revenue soaring to Rs 2,024 crore in FY23, a substantial increase from Rs 142.36 crore in FY22, marking a 14-fold rise. Despite this success, the company’s losses also escalated significantly, more than tripling from Rs 390 crore in FY22 to Rs 1,272 crore in FY23.