Zepto raises free-delivery threshold to Rs 199 during normal hours
Zepto has raised its minimum order value for free delivery to Rs 199 during normal hours and up to Rs 299 during high-demand periods. The move comes as quick-commerce platforms seek better margins while balancing delivery costs and customer demand.
New Delhi: Quick-commerce platform Zepto has raised the minimum order value required for free delivery by up to Rs 299 — which seen during periods of high demand — and by 33.55 per cent to Rs 199 in normal hours which bringing its threshold in line with rivals.
Earlier, the threshold was at Rs 149. According to many customers, the minimum order value was Rs 299, due to periods of high demand.
Reports suggest that the move comes as quick-commerce companies seek to improve order-level economics while balancing delivery costs and customer demand.
The higher threshold could encourage customers to add more products to their baskets, potentially increasing the average order value and improving contribution economics on smaller orders.
However, the increase could also test customer willingness to place low-value orders, particularly for convenience-led purchases where consumers typically seek quick delivery of a limited number of items.
Zepto’s revised threshold puts its free-delivery minimum in line with those of Eternal-owned Blinkit and Swiggy’s Instamart, highlighting the increasingly competitive nature of India’s quick-commerce market.
In March this year, the food delivery platform Zomato increased the platform fee by around 19 per cent or Rs 2.40 per order. On a pre-GST basis, the platform fee was at Rs 14.90 per order, up from Rs 12.50 earlier.
Similarly, after Zomato, Swiggy also raised its platform fee by 17 per cent to Rs 17.58 per order from Rs 14.99 earlier. The revised charges — as per its billing in the app — suggested a hike of around 17 per cent or Rs 2.59, including pre-GST.
Online delivery platforms are increasingly experimenting with delivery charges, order thresholds and other pricing measures to improve margins while retaining customers.