Instamart, Zepto, Blinkit to introduce new charges for orders that do not meet specified MOV: Report

Indian quick commerce platforms have introduced a new set of fees and handling charges, including basket size levies, small-order surcharges, and weather-related fees like rain charges, in a bid to improve unit-level profitability, as reported by The Economic Times on Monday.

Quick delivery getting costlier

Starting this month, quick commerce giants such as Instamart, Zepto, and Blinkit have raised the charges applied to orders that do not meet a specified minimum order value (MOV).

According to the report, these new charges are added to the regular platform and service fees that are already applicable.

Zepto has implemented a handling fee for orders below Rs 175. Instamart, Swiggy’s quick commerce arm, has revised its MOV to Rs 99.

Meanwhile, Blinkit not only applies a “quick delivery” charge but also charges extra for bulk orders or discounted purchases.

According to analysts at JM Financial, increased charges and policy adjustments are likely to improve platform "take rates", which represent the ratio of a platform’s revenue to the total gross value of orders.

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Industry speculation

Industry experts are remarking that the rising delivery charges are going to influence how platforms manage the gap between what they earn from customers and what they pay gig workers for last-mile delivery.

In some cases, these quick commerce companies also impose higher handling fees on larger carts. Besides, a surge charge may apply during peak hours or when delivery personnel are in short supply and the order falls below a certain value.

"Besides the cost of expanding dark stores, one of the key challenges remains the inability to raise take rates,” a senior official at a leading quick commerce firm told the Economic Times. “Many platforms are pricing certain products higher while offering deep discounts or free deliveries on others to balance the equation.”

As per the latest available data, quick commerce leader Blinkit faced an operational loss of Rs 178 crore during the January-March quarter.

Notably, Blinkit, Instamart, and Zepto account for 80-85% of India's quick commerce market.

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