Top quick commerce platforms Blinkit and Zepto are raising commissions to boost revenue in fierce competition and enhance profitability. Zepto is incrementally increasing rates for users and brands, while Blinkit is using a variable commission model for sellers and brands.
The rapid expansion of quick commerce firms has escalated cash burn, impacting investor confidence. This has resulted in a decrease in market capitalization for public companies such as Zomato and Swiggy, which operates the Instamart platform. While Zepto and Blinkit altered their commission structures, Instamart and Flipkart Minutes have maintained their existing models.
Zepto’s rising take rate, now at 22-23%, aims to boost unit economics for its upcoming IPO amidst market volatility. Undeterred by recent stock market declines, Zepto remains committed to its IPO goals. Its net fee structure favors existing users, aligning with efforts to drive profitability before going public.
Blinkit’s current commission system ranges from 3% to 18%, but starting March 13, it will shift to a variable rate based on item selling prices within categories. This adjustment means lower-priced items (under ₹500) will have a 2% commission, mid-range items (₹500-₹700) will be at 6%, and higher-priced items (₹1,200 and above) will have an 18% commission.
Blinkit’s product mix on its marketplace has changed since fixed commission rates were introduced. A senior executive mentioned to The Economic Times that despite many high-priced SKUs, Blinkit’s take rates didn’t rise even with higher AOVs because of category rate decisions. Despite Zepto ranking second in quick commerce, Blinkit remains a dominant player in the field, maintaining an aggressive approach.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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