Zepto Raises Minimum Order For Free Delivery To ₹199 From ₹149 Earlier

Quick-commerce firm Zepto has raised the minimum purchase amount needed for free delivery from ₹149 to ₹199, according to reports on August 19. The updated criterion applies to certain cities and PIN codes, aligning the Indian company with the pricing strategies of rivals Blinkit and Instamart. Previously, Zepto had increased the minimum order from ₹99 to ₹149 for numerous customers.

In instances of heightened demand, the minimum order value can now surge to ₹299. This latest hike may aid Zepto in enhancing its financial performance by cutting delivery expenses and curbing cash burn during the quarter. Industry experts suggest the move is aimed at curbing quarterly cash burn. The adjustment could also impact the competition within India's rapidly surging quick-commerce industry, where businesses vie fiercely on delivery speed, pricing, and customer acquisition.

Both Blinkit and Instamart may gain from the higher delivery threshold, potentially strengthening their market positions. During early trading on August 19, Eternal shares rose by nearly 1% to ₹319, while Swiggy shares fell by 0.58% to ₹272. Zepto's shift in its free-delivery threshold underscores the increasing emphasis on order economics and profitability as India's quick-commerce entities strive to strike a balance between rapid expansion and tighter control over operating costs.