Zepto's free delivery minimum rises to Rs 199, at par with Blinkit, Swiggy

Zepto has hiked its free-delivery minimum order value to Rs 199 from Rs 149 in select areas, joining rivals Blinkit and Swiggy Instamart as quick-commerce companies seek to improve profitability.

In Short

• Zepto raises minimum order value for free delivery to Rs 199 from Rs 149
• Cart value increase aligns Zepto with rivals Blinkit and Swiggy Instamart
• Higher minimum order value may deter customers with small, urgent orders

Quick commerce platform Zepto, popular for its customer-friendly cart charges, has raised the minimum order value (MOV) required for free delivery to Rs 199 from Rs 149. The company had earlier raised the threshold from Rs 99 to Rs 149 for several users last year.

For the app users, this move would make smaller orders more expensive. To bypass the charge, customers will now be required to add more items to their cart to qualify for free delivery. The Rs 199 order value brings Zepto in line with its quick commerce rivals Blinkit and Swiggy Instamart, which also have similar requirements of minimum order values for either waiving the delivery charge or offering free delivery.

In special cases during periods of high demand, the MOV can further go up to Rs 299, making the free-delivery threshold dependent on demand conditions. Such changes are aimed at improving the economics of smaller orders and could encourage customers to increase their basket size. An order at Film City, Noida reflected the updated MOV on Zepto in a small cart order.

For Zepto, the decision comes as quick-commerce companies continue to focus on improving unit economics while competing on delivery speed, pricing and convenience. However, a higher free-delivery threshold could also affect customers who use the platform mainly for small and urgent purchases.

"Zepto has taken up its minimum order value for free delivery up to Rs199 in select cities/pin codes from Rs149 earlier, according to our price checks. We believe this is its attempt to rein in its quarterly burn, and this could have a positive impact for the peers," said the Kotak Institutional Equities in a report by Moneycontrol.

The brokerage expects Blinkit and Instamart to potentially benefit through higher net order value growth and some market-share gains.

For Zepto, the key trade-off will be between improving order economics and retaining customers who use quick-commerce platforms for small, frequent purchases. The higher threshold could potentially lift average basket sizes, but may also discourage its wide base of low-value orders.

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