Swiggy Instamart, Blinkit, Zepto Revise Charges Amid Soaring Losses

Quick commerce platforms Zepto, Blinkit, and Swiggy's Instamart have started charging extra to customer orders over and above the existing platform and service fee, according to a report.  

The charges include basket size levies, small-order fees, bulk order handling charges, and weather-related costs such as rain fees, aimed at improving unit-level profitability. The new charges are already live across major apps, The Economic Times reported.

Zepto has introduced a handling fee on orders below Rs 175. Instamart, the quick commerce arm of Swiggy, has revised its minimum order value (MOV) to Rs 99. Blinkit applies both a "quick delivery" fee and additional charges for bulk or discounted orders.

The charges vary across cities and order types, typically ranging between Rs 6 and Rs 30 per order. Zepto's app cites "handling of products at our stores" as the reason for the charge. Blinkit claims its fee helps ensure "proper handling" and "high-quality, quick deliveries."

Platforms have also introduced surge fees during high-demand hours or when delivery workers are in short supply, especially for orders below threshold values. Higher handling fees also apply to larger baskets on some platforms.

The quick commerce market in India is currently dominated by Blinkit, Instamart, and Zepto, which together control 80-85 per cent of the sector. The competition has made it difficult for companies to raise delivery fees, which are often still subsidised.

Financial data reflects growing pressure on profitability. Blinkit posted an operational loss of Rs 178 crore in the January-March quarter, nearly five times more than the same quarter a year ago. Swiggy Instamart's losses tripled to Rs 840 crore during the same period.

Other platforms, including BigBasket's BBnow and Flipkart Minutes, are also implementing similar fee structures. While delivery charges remain largely unchanged, platforms have raised minimum order values (MOVs) thresholds to encourage higher average order values (AOVs). 

Zomato and Swiggy, in the food delivery space, have also leaned on platform fees to shore up earnings. Both raised their fees from Rs 2 in August 2023 to Rs 10 by October 2024. They have maintained this level to avoid customer attrition in a slow-growth market.