Mumbai, March 7: Blinkit and Zepto, two of the most popular quick commerce platforms, will reportedly hike their platform commissions amid the rising battle in the market. Blinkit and its rival Zepto will announce the new commissions soon to improve their profit margins in the market. Zepto will raise its fees ahead of its IPO, while the rival Blinkit will reportedly shift to a dynamic commission model.

Both Blinkit and Zepto have different reasons for opting for a new commission and hiking fees. The reports highlighted that both companies would increase the commission amid the cutthroat competition in the quick commerce market. It is said that due to the expansion of the services, these platforms have increased their spending, leading to cash burn, which affected the confidence of the investors. Tech Mahindra Inaugurates New Headquarters in Texas, Takes Significant Step To Expand Its Footprint in US Market.

Zepto Commission Hike; Check Reasons

Zepto is a Bengluru-based quick commerce company valued at USD 5 billion. The company platform will raise its commission ahead of the Zepto IPO launch in India. The reports said that the commission hike at Zepto would be because of scaling the business. Zepto CEO Aadit Palicha had reportedly discussed the changes with mutual fund investors before the IPO launch. Zepto, having around 1,000 dark stores, had been competing with the rival Blinkit and planning its expansion by partnering with third-party fleet owners like Ola Electric. This would help it reduce the costs of delivery.

Blinkit Commission Hike; Check Reasons

Blinkit, on the other hand, used to charge from 3% to 18% commission; however, from March 13, 2025, it will move to a dynamic commission model. With the new structure, the Zomato-owned quick commerce platform would charge 2% for items under INR 500 and 6% for items under INR 500 to 700. The reports suggested an 18% commission on items above INR 1,200. Share Market Today: Indian Stock Market Opens Lower; Sensex Above 74,200, Nifty Drops by Over 16 Points.

Blinkit's senior executive said that the product and category mix market has changed significantly since introducing fixed commission rates. However, he said that Blinkit's rates did not improve amid the decision to rate for a particular category amid thousands of SKUs with higher ASPs. As per the reports, both the quick commerce platforms focus on aggressive expansions.  

(The above story first appeared on LatestLY on Mar 07, 2025 05:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).