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E Commerce

Quick-Commerce Platforms Add Hidden Fees to Reduce Losses Amid Fierce Competition

India’s quick-commerce players like Blinkit, Zepto, and Instamart are adding multiple extra charges—such as handling, convenience, surge, or rain fees—to each order to help offset their heavy operational losses. These new surcharges typically range from ₹6 to ₹30 per order and vary based on city and platform.

To encourage higher spending per order, these platforms are also raising minimum order values needed for free delivery. This strategy aims to boost the average order size while avoiding a visible hike in standard delivery fees, which could drive customers away in a highly competitive market.

The intense rivalry and reliance on discounts mean that delivery costs are already deeply subsidized. By stacking smaller fees instead of raising core prices, companies hope to improve how much they earn per order without damaging their image for affordability.

Industry reports show that major players dominate about 80–85% of the market but continue to post large losses—for example, Blinkit reported a ₹178 crore loss in one quarter, while Instamart’s losses topped ₹840 crore for the same period.

However, some users have begun to complain about these unexpected fees, and regulators are now watching closely for unfair practices that may mislead consumers. This extra scrutiny could lead to stricter rules if companies are found to be using “dark patterns.”

Overall, the quick-commerce industry is trying to strike a balance between retaining price-sensitive users and achieving profitability, especially with the market projected to grow significantly in the next few years.

by Tech In Asia

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