Zepto Drops Handling and Surge Fees — A Bold Move to Win India’s Quick Commerce Game

Let’s be honest — if you’ve ordered groceries online in India lately, you’ve probably noticed something sneaky at checkout. You add your items, the total looks fine, but then — boom — handling fee, small order fee, rain surcharge. It’s like an invisible tax on convenience.

Well, guess what? Zepto just threw those fees out the window.

The Mumbai-based 10-minute delivery startup announced that it’s removing all handling and surge fees across the board, and also offering free delivery on all orders above ₹99. For smaller orders below that mark, there’s still a tiny delivery charge — around ₹30 — but that’s it. No hidden extras, no “rain surcharge,” no random ₹5 fee that no one understands.

And to add a little drama, this move comes only weeks after Zepto raised a whopping $450 million in fresh funding. If that doesn’t scream “we’re going on the offensive,” I don’t know what does.

A Little Background: What’s Zepto Up To?

For anyone who’s been living under a rock, Zepto is one of India’s fastest-growing quick commerce players — those apps that promise to get groceries, snacks, and essentials to your doorstep in under 10 minutes. Competing head-to-head with Blinkit and Swiggy Instamart, Zepto has built a solid reputation for speed and reliability, especially in big cities.

But in recent months, users (including me, guilty as charged) started noticing higher prices during checkout. The products looked cheap, but by the time you paid, a bunch of small fees had sneaked in — handling, surge, weather, platform, you name it.

So this new update from Zepto feels like a breath of fresh air. The company says pricing simplifies to make orders more transparent and affordable. Basically, what you see is what you pay.

Read: Best Food Delivery Business Ideas

So, What Exactly Changed?

Here’s the simple version:

• 🚫 No Handling Fees – That ₹4–₹6 add-on is gone.
• ☔ No Surge or Rain Fees – Even during heavy demand or bad weather.
• 🆓 Free Delivery for Orders Above ₹99 – That’s right, 99 bucks is your magic number.
• 💰 Flat Delivery Fee (~₹30) – For smaller orders under ₹99.

That’s it. No gimmicks. No confusing breakdowns.

It’s worth noting that Zepto didn’t just tweak its model on a whim — it’s a strategic shift aimed squarely at boosting user loyalty and volume.

Why This Move Matters

At first glance, this sounds like a customer-friendly update (and it is), but it’s also a clear strategic statement. Zepto isn’t just trying to make people happy — it’s trying to win the quick commerce war.

India’s q-commerce market is heating up fast. Blinkit (backed by Zomato) has a massive presence, Swiggy Instamart is still a heavyweight, and BigBasket’s BBNow is fighting for its share too.

By scrapping all these pesky fees, Zepto is taking a direct shot at its competitors. It’s betting that transparency + affordability = loyalty. And in India, where even a ₹5 price difference can change buying behaviour, this might just work.

Also, let’s be real — consumers are tired of seeing “extra charges” at checkout. People want clean, fair pricing. Zepto’s timing here is perfect.

Read: How to Open a Zepto Franchise in India

The Bigger Picture — Why Now?

The most interesting part of all this is the timing. Zepto recently raised $450 million, putting its valuation north of $3 billion. That’s a lot of firepower.

Instead of using the money just to expand dark stores or add new products, they’re using it to lower prices and attract more users. It’s basically the “Jio strategy” — take a hit now, dominate the market later.

Remember how Jio disrupted telecom by slashing prices and offering freebies until everyone switched over? Zepto’s playing a similar game — but in groceries. And honestly, it might just work, especially given India’s price-sensitive consumer base.

What It Means for Customers

For everyday users, this move makes life simpler and cheaper. If you’re a regular Zepto customer (or even someone who occasionally orders snacks late at night), here’s what you’ll notice:

• No more random “handling fee” surprises at checkout.
• Lower overall bill amount, especially on small orders.
• Consistent pricing — whether it’s raining, sunny, or 9 PM on a Friday.
• Easier mental math — the price you see is what you actually pay.

It’s a subtle but powerful shift in customer trust. When people feel they’re being treated fairly, they tend to stick around. And in a business like this, retention matters more than acquisition.

But Let’s Be Honest — There’s Risk Too

Now, not to rain on Zepto’s parade, but this move isn’t without its risks. Removing fees means sacrificing a chunk of easy revenue.

Those ₹5 and ₹10 add-ons may look small individually, but across millions of monthly orders, they add up to a serious number. Dropping them entirely could squeeze margins hard — especially in a business where delivery, rent, and manpower already cost a bomb.

Still, Zepto seems confident that higher order volume will make up for it. If more people start using the app more often, the math might balance out.

But if competitors follow suit (and they probably will), everyone’s margins could get slimmer — leading to a good old-fashioned price war. And let’s be honest, while that’s great for customers, it’s brutal for startups.

The Competitive Landscape

To understand how bold this move is, let’s compare it with the competition.

• Blinkit still charges handling and surge fees in most cities.
• Swiggy Instamart has platform fees and surge charges depending on time and demand.
• BBNow (BigBasket) adds small-order and packaging fees too.

So yes, Zepto is now the only major player offering a truly “no hidden fee” structure. That’s a huge differentiation — at least for now.

It positions Zepto as a customer-first brand in an increasingly crowded market. And if they can maintain this edge while keeping delivery times and service quality consistent, it could seriously shake up the pecking order.

The Business Strategy Behind It

If you look closer, this is more than a feel-good move — it’s a growth strategy.

• Customer Acquisition: Lower prices attract new users from Blinkit and Instamart.
• Frequency Boost: Existing customers might order more often when there’s no extra fee anxiety.
• Retention: Transparent pricing builds trust and repeat usage.
• Volume Game: More orders → better economies of scale → lower per-order cost.

Of course, there’s the question of sustainability. You can’t subsidise forever. But as long as Zepto uses its funding wisely to build efficiency and brand stickiness, it might just pull off what Jio did in telecom — a complete market shift.

My Take: Smart, Bold, and Risky (All at Once)

Personally, I think this is one of Zepto’s smartest moves yet. It’s gutsy. It’s customer-centric. And it’s timed beautifully.

Consumers today are sharper than ever. They hate hidden costs and love transparency. Zepto’s decision to go “fee-free” taps perfectly into that sentiment.

But as a business analyst, I’ll say this — the honeymoon phase won’t last forever. Eventually, the company will need to balance costs, maintain quality, and prove that this pricing model can work long-term.

For now, though, Zepto has clearly outsmarted the competition in the perception game. It feels fairer, simpler, and friendlier — and in today’s crowded quick-commerce landscape, that’s a big win.

So next time you order your midnight ice cream or emergency onions, don’t be surprised if Zepto pops up first — cleaner bill, zero drama, and maybe a smile when you hit “Pay Now.”

Summary: Zepto has dropped all handling and surge fees, offering free delivery for orders above ₹99. The company is betting big on transparency and affordability to win more customers — a bold, risky, and potentially game-changing move in India’s quick commerce market.