Zepto drops delivery, handling fees after $450m funding

Zepto has removed handling and surge fees from all orders and lowered its minimum order value for free delivery to 99 rupee (US$1.12), following a recent US$450 million funding round.

The Bengaluru-based quick commerce platform is now promoting zero handling, zero delivery fee for orders above 99 rupee (US$1.12), and zero rain and surge charges on its app.

Previously, Zepto charged handling, rain, and surge fees, though it said it will continue providing incentives to delivery partners.

Competitors such as Blinkit and Swiggy’s Instamart still charge handling and delivery fees for smaller orders.

Analysts expect increased funding across the sector will drive more discounting and competition, as Zepto also faces user complaints over alleged dark patterns in its app.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Zepto’s zero-fee push may be unsustainable without proven unit economics

Zepto scrapped handling and surge fees after a $450 million raise, which puts unit economics (per-order profitability) under the lens 1. FY24 losses hit Rs 1,249 crore, with monthly cash burn (net cash outflow) at Rs 250–300 crore, after fundraises totaling Rs 11,475 crore 1.
Leadership cites better margins, with PAT as a share of revenue moving from -63% to -28% 1. Expenses rose 72% as absolute loss fell 2% 1.
Blinkit charges Rs 11 handling and Rs 30 delivery on small orders, while Dunzo’s fall during a funding crunch made clear the risk of subsidy wars 2.

Demand emerges for UX compliance tools as dark pattern enforcement tightens

The Central Consumer Protection Authority (CCPA) ordered e-commerce platforms to run self-audits within three months of its June 2025 advisory and to remove practices banned in the 2023 guidelines 3. Penalties reach up to INR (Indian rupees) 2 million, with BookMyShow and IndiGo already fined 4.
B2B Software-as-a-Service (SaaS) vendors can build user experience (UX) compliance tools for quick-commerce and e-commerce teams. Software could detect basket sneaking, false urgency, plus confirm shaming to reduce penalties and reputational damage 4.
Flipkart filed a self-audit with the Ministry, and vendors that align dashboards with the CCPA’s Jagriti monitoring system (the regulator’s compliance portal) can win share as firms work toward compliance through December 31, 2026 5 6.