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Updated: July 01, 2025 07:32
India's top fast commerce platforms—Instamart, Zepto, and Blinkit—are tightening their margins. Since July 2025, these platforms have begun charging fresh fees for orders placed below a minimum order value (MOV) threshold, in a bid to stem increasing operating losses and improve profitability.
Key Updates
Zepto now charges a delivery fee for purchases below ₹175
Instamart has revised its MOV to ₹99, with extra delivery fees on low baskets
Blinkit also charges a quick delivery fee and additional charges for bulk or discounted orders
Surge pricing can be done during rush hours or when there are few delivery personnel
Why the Change?
Profit Pressure
As volumes go through the roof, platforms hemorrhage money
Blinkit posted an operating loss of ₹178 crore in Q1 2025
Instamart's gross order value doubled to ₹4,670 crore, while EBITDA losses widened to ₹840 crore
Growing Take Rates
The extra charges are meant to increase take rates—the percentage of income platforms make per order
Experts opine that the changes are necessary to offset customer discounts with payments to gig workers
Customer Impact
They now deal with basket-sized fees, rainy-day fees, and higher fees on large carts
Charges range from ₹6 to ₹30 per order, depending on the platform and location
Social networking sites abound with complaints about hidden fees and declining worth
Market Outlook
India's rapidly growing commerce sector is projected to reach $30 billion by FY30
Platforms are facing pressure to grow sustainably with intense competition from BigBasket, Flipkart Minutes, and others
Government has asked platforms to review fee disclosures for themselves amid rising consumer concerns
Sources: NewsBytes, Moneycontrol, Economic Times BrandEquity, JM Financial, Swiggy, Eternal Ltd, Zepto, Blinkit