Blinkit, Zepto Raise Commissions To Drive Revenue Amid Fierce Competition; Here's What To Expect

Zepto's take rate has increased to 22-23 per cent and could rise further as it approaches a $4 billion annualised gross sales run rate next month

Zepto's efforts to improve its unit economics are also tied to its plans for an initial public offering this year

Source : Facebook,X

Blinkit and Zepto, the leading quick commerce platforms, are raising the commissions they charge to increase revenue amid fierce competition and a focus on profitability. Zepto has been steadily increasing the commissions it imposes on users and brands to enhance its unit economics. Meanwhile, Blinkit has adopted a variable commission model for brands and sellers, according to The Economic Times report citing sources familiar with the matter.

The rapid expansion of quick commerce companies in the face of intensifying competition has resulted in higher cash burn, which is negatively affecting investor sentiment. This has led to a decline in the market value of publicly traded companies like Zomato, Blinkit's parent, and Swiggy, which owns the Instamart platform. Despite these changes, Instamart and new entrants like Flipkart Minutes have yet to adjust their commission structures.

Zepto's efforts to improve its unit economics are also tied to its plans for an initial public offering (IPO) this year, despite the significant decline in stock markets since December, which has raised concerns for companies planning public offerings.

Commission Structure

For Blinkit, its new commission structure could increase the total take rate, which refers to the percentage of the gross order value (GOV) that the platform retains as commission, according to sources in the report.

Zepto's take rate has increased to 22-23 per cent and could rise further as it approaches a $4 billion annualized gross sales run rate next month. The company, last valued at $5 billion, reported hitting $3 billion in annualized gross sales as of January.

"Yes, Zepto has hiked commissions as the business scales and there is constant work on the bottom line," a source familiar with the matter said in the report, noting that this trend is expected to continue in the coming months.

Zepto IPO

Sources in the report also revealed that Zepto’s net fee for existing users is higher than for new customers, as part of the company’s broader strategy to achieve operating profitability ahead of its IPO. CEO Aadit Palicha has discussed this approach with mutual fund investors in recent weeks as part of talks regarding the company’s public offering.

“The company has outlined FY26's final quarter for the IPO to local investors, but its internal target is to launch sooner,” said another source in the report. “Zepto now operates nearly 1,000 dark stores, about the same as Blinkit,” the report added.

In parallel, the Bengaluru-based company has been in discussions with third-party fleet operators like the Ola group for deliveries. “The goal is to reduce per-delivery costs—it's that simple. For certain bulk orders, Zepto has explored using third-party platforms for delivery,” a person familiar explained in the report.

Fixed Commission Rate

Blinkit, on the other hand, currently has a fixed commission rate between 3 per cent and 18 per cent, depending on the product category. However, starting March 13, Blinkit will charge rates based on the selling price of items, even within the same category. According to an email sent to sellers, which ET has seen, products priced under Rs 500 will face a 2 per cent commission, items priced between Rs 500 and Rs 700 will have a 6 per cent commission, and products priced above Rs 1,200 will incur an 18 per cent commission.

These marketplace commissions are in addition to other fees for storage, warehousing, and deliveries, pushing the total share taken by quick commerce platforms to approximately 30-35 per cent of the selling prices. Larger brands with better negotiating power tend to pay less.