Zepto won't offer you free delivery for orders below ₹199
What's the story
Zepto, a leading player in the quick commerce industry, has increased its minimum order value (MOV) for free delivery from ₹149 to ₹199. The change comes after a similar hike last year when the company had raised the threshold from ₹99 to ₹149 for some users. The new MOV is now on par with other quick commerce platforms like Blinkit and Swiggy Instamart.
Policy change
MOV may reach ₹299 during high-demand periods
The new MOV policy by Zepto will make smaller orders more expensive for app users.
To avoid the delivery charge, customers will now have to add more items to their cart.
The company has also said that in special cases during high-demand periods, the MOV can go up to ₹299. This makes the free-delivery threshold dependent on demand conditions.
Strategic move
Impact on customers and competitors
The decision to increase MOV 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 impact customers who primarily use the platform for small and urgent purchases.
Kotak Institutional Equities believes this is Zepto's attempt to rein in its quarterly burn, which could positively impact competitors like Blinkit and Instamart through higher net order value growth.