Zepto raises free-delivery threshold to ₹199, with ₹299 peak-demand minimum
Zepto has lifted its free-delivery minimum from ₹149 to ₹199, with thresholds reaching ₹299 in high-demand periods or locations. Orders below the applicable threshold incur a ₹30 delivery fee, a move aimed at lifting basket sizes and improving margins ahead of a planned pre-IPO fundraise.
What happened
Zepto has raised its free-delivery threshold to Rs 199 and up to Rs 299 at peak demand, matching Blinkit and Instamart. The move targets better margins and
Key facts
- Free-delivery threshold raised to Rs 199 from Rs 149
- Threshold can rise to Rs 299 during peak demand/high-demand locations
- Rs 30 delivery fee below applicable threshold
- Previous Rs 99 free-delivery threshold launched in November 2025
- Blinkit handling fee increased to Rs 11 from Rs 5
- Zepto paused IPO at end-July
- Proposed pre-IPO raise: about $105 million
- Proposed valuation: $4-4.2 billion
- Domestic mutual-fund valuation indication: $2.5-3 billion
- Cash as of March 31: Rs 5,681 crore
- No debt as of March 31
Why this matters
Zepto’s pricing reset raises the competitive bar for quick-commerce rivals, potentially accelerating industry-wide delivery-fee rationalization and making scale economics more valuable.
What to watch
- Change in average order value, orders per user, and cart-abandonment rates after the threshold increase.
- Repeat-order retention among customers whose historical baskets were below ₹199.
- Frequency and geographic spread of the ₹299 peak-demand threshold.
- Blinkit and Swiggy Instamart delivery-fee, minimum-order, and membership-promotion responses.
- Zepto commentary on contribution margin, delivery cost per order, and cash burn during pre-IPO fundraising.
- Customer-service and social-media complaints about variable peak-period pricing.
- Use targeted coupons or membership benefits to retain high-frequency low-AOV users without restoring broad free delivery.
- Increase in-app cross-sell prompts, bundle offers, and threshold progress indicators to push baskets above ₹199 and ₹299.
- Adjust assortment toward replenishment staples, private labels, and high-margin impulse add-ons that help customers reach thresholds.
- Deploy location-, time-, and customer-specific thresholds rather than a uniform increase if churn rises.
- Competitors may respond with selective free-delivery promotions, lower thresholds, or subscription-led delivery benefits in overlapping micro-markets.