Quick commerce players slash platform, delivery fees to attract customers

As the quick commerce (qcom) race heats up, platforms are queuing up to waive additional fees above a certain amount on orders to make shopping more affordable and attract price-sensitive customers.

 

As part of its ‘All New Zepto Experience’ initiative, unicorn Zepto is not charging any platform fee, delivery fee, or surge charge (rain fee or an additional fee due to high demand) on orders above ₹99. For orders below ₹99, the company currently charges a delivery fee of around ₹30.

 

Similarly, Swiggy Instamart has also scrapped any additional fee, though the threshold for free orders is slightly higher at ₹299. The move is part of the company’s ‘No November Surge’ campaign. However, for orders below this amount, the company is charging a handling fee and goods and services tax (GST). It includes GST on delivery and a surge fee, and GST on the handling fee. The standard delivery fee for orders below ₹199 is ₹30, and for orders above ₹199 is ₹16.

 

Notably, the platform fee is an amount companies charge for operations like running and maintaining their applications, while the delivery fee goes to delivery partners.

 

Another qcom company, Blinkit, has not made any changes to its current fee structure. The platform continues to provide free delivery on orders over ₹199 while also charging a handling fee. Blinkit charges a delivery fee of ₹30 on orders below ₹199. Likewise, Flipkart Minutes, the qcom arm of e-commerce platform Flipkart, also does not charge a delivery fee on orders worth over ₹199.

 

Qcom platforms are aggressively fighting for market share and building a war chest. For instance, Zepto recently announced the closure of an approximately $450-million funding round at a valuation of $7 billion, and Swiggy Instamart is also gearing up for a ₹10,000-crore fundraise, likely through a qualified institutional placement (QIP).