India’s fast commerce industry is known for its lightning-fast deliveries and deep discounts, is now confronting a brutal economic reality. Giant players such as Swiggy Instamart, Blinkit, and Zepto are now trapped in a race not only for speed, but for sustainability. Having expanded aggressively over the years, pursued razor-thin margins, and pursued discounts with single-minded fervour, these companies are now facing escalating quarterly losses that imperil the very business model they pioneered. In response, they are transforming their pricing strategies—adding new charges, minimum order quantities, and handling fees, in an effort to stop the bleeding and move towards profitability. But as these fees quietly add up on consumers’ bills, the big question is:
Will Indian Shoppers keep Shelling out Extra for Convenience or Start Resisting?
Let’s find out what the reasons are for this upsurge in charges and what the future of these quick commerce giants looks like in India
1. Rising losses compel a price reset
- India’s top “quick commerce” platforms -Swiggy Instamart, Blinkit, and Zepto- all reported growing quarterly losses, and that has triggered immediate action
- Blinkit’s operating loss for Q1 January to March 2025 jumped to ₹178 crore, about five times what it was in the same period last year. While Instamart’s losses ballooned too, increasing threefold to around ₹840 crore in the period.
- Meanwhile, Swiggy Group posted a consolidated Q4 net loss of ₹1,081 crore, which is mainly due to an increased investment in Instamart. We come to realise that the majority of these losses are a result of steep expenses such as quick builds of dark stores, discounted delivery to maintain market share, and heavy discounting to capture consumers, all of this in a highly competitive urban market.
2. Layered charges now span multiple order types
- To mitigate this unit-level bleeding, platforms have started sneaking in additional charges beyond portal and delivery charges. Starting with- Minimum Order Value (MOV) caps. Instamart has increased its MOV to ₹99, whereas Zepto charges a handling fee for orders below ₹175
- Small‑order surcharge is now between ₹6 to ₹30, imposed on low-value carts and is based on the city and the time of the order.
- There is also a bulk‑order handling fee; Blinkit is now charging for big or discounted orders for additional handling.
- Surge and rain charges: In all three main quick commerce apps a surge pricing occurs during peak times or labour shortages or bad weather. Zepto calls its charge “handling of products at our stores,” while Blinkit’s is defended as being for “proper handling” and a quick delivery.
3. Bigger baskets = improved margins
- With the surge in fees, the intention here is to encourage users to order more. By raising the MOV for free shipping, platforms encourage customers to bunch items, increasing average order value (AOV)
- Increased basket size surcharges charge more for smaller orders, supporting this shift in behaviour.
4. Q-commerce is booming, but profits remain elusive
- Quick commerce, with 10-to-20-minute doorstep deliveries, has witnessed explosive growth in urban India, which is valued at $ 8.2 billion in FY25 and is likely to reach $ 30–35 billion in a few years
- Platform revenues indicate stable growth as Instamart’s gross order value doubled year-on-year to ₹4,670 crore in Q4, with a 45 percent quarter-on-quarter increase in dark-store count, with 316 new outlets.
- But profitability is still far away with Blinkit still loss-making with a 40% market share, Zepto is at 29%, and Instamart trails at 26%. High operational costs, delivery incentives, and price cuts make short-run profitability challenging.
5. Regulatory focus on discounting
- Concurrently with fee hikes, these platforms also attract scrutiny from the competition commission:
- The CCI (Competition Commission of India) has initiated an antitrust investigation into suspected predatory discounting by Blinkit, Instamart, and Zepto which is prompted by complaints from distributors.
- The government’s digital consumer guidelines have identified hidden fees such as item-handling, rain charges, as an illegal dark pattern, and self-audit orders to quick commerce apps. This rising scrutiny limits pushy pricing tactics while growing transparency demands.
6. Industry reactions and what’s next
- Instamart increased MOV and added extra charges subtly.
- Blinkit applied layered charges for small and large orders, with additional surge fees for fast delivery.
- Zepto relied on fees for handling below ₹175 levels while introducing membership plans and increasing store numbers.
- Competitors such as BigBasket’s BBnow and Flipkart Minutes are also following the same fee patterns.
- The Food-delivery rivals- Zomato and Swiggy already have platform charges at ₹10 (up from ₹2 in 2023) since October 2024, exhibiting customer acceptance.
- Experts see these intertwined dynamics of fees, increased AOVs, and delivery subsidies playing out to shape the quick commerce market over the next 9–12 months
Verdict
- Quick commerce in India is at a turning point: with hot consumer demand, hypergrowth of dark-store networks, and impending capital squeeze through losses.
- Growth and sustainability are the ultimate challenge: Customers will object, but sophisticated fee models will work as long as delivery remains affordable and quick.
- Regulators will be monitoring fee transparency, packaging, and discounting.
- Platforms need to maximize unit economics by stifling buried subsidies, inspiring more orders, and higher-margin orders.
- Eventually, fee increases and MOV tweaks are necessary for the short-term measures, but the long-term profitability will be dependent on operational efficiency, astute inventory, and unit-level discipline, particularly when the intense war for market share recedes.
Written by Adithya Menon
