Quick Commerce Shake-Up: Blinkit and Zepto Revise Fees – Details Inside

Quick Commerce Shake-Up: Blinkit and Zepto Revise Fees – Details Inside

The quick commerce industry in India is witnessing strategic shifts as leading platforms Blinkit and Zepto adjust their commission structures to bolster revenue and edge closer to profitability. These changes come amid intensifying competition and escalating operational costs, prompting companies to reassess their financial strategies.

Zepto’s Incremental Commission Increases

Zepto has been progressively raising the commissions charged to both users and brands. This strategy aims to enhance the company’s unit economics, a crucial factor as it prepares for an anticipated IPO later this year. The company’s take rate has risen to approximately 22-23% and is projected to increase further as it approaches an annualized gross sales run rate of $4 billion.

Blinkit’s Transition to a Variable Commission Model

Blinkit is set to implement a variable commission model starting March 13, 2025. Under the new structure, commission rates will be linked to the selling price of products within the same category. For instance, products priced below ₹500 will incur a 2% commission, those between ₹500 and ₹700 will be charged 6%, and items priced at or above ₹1,200 will attract an 18% commission.

Quick Commerce Shake-Up: Blinkit and Zepto Revise Fees – Details Inside

Implications for the Quick Commerce Industry

The aggressive expansion of quick commerce platforms has led to increased cash burn, affecting investor sentiment and resulting in a decline in market capitalization for publicly listed companies like Zomato, Blinkit’s parent company, and Swiggy, which operates Instamart. Despite these challenges, both Blinkit and Zepto continue to pursue growth, with Zepto operating nearly 1,000 dark stores, matching Blinkit’s footprint.

Conclusion

The commission hikes by Blinkit and Zepto reflect a strategic effort to improve financial performance amid a competitive landscape. As these platforms adjust their business models, the quick commerce industry is poised for further evolution, with profitability and sustainable growth remaining central objectives.

Don’t miss this:

Zomato Invests ₹1,500 Crore in Blinkit to Fortify Quick Commerce Presence


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