In the latest turn of events, Swiggy’s Instamart, Flipkart Minutes, and Zepto are in a bid to scrap or reduce fees to attract high-frequency users during the festive rush, Moneycontrol reported. This comes at a time when the sector is facing intense competition, while companies are under pressure to balance growth with profitability.
Swiggy’s Instamart recently rolled out free delivery and no handling or surge charges on orders above Rs 299 as a part of its ‘MegaSavings Festival’. Flipkart’s quick delivery arm, Minutes, is offering zero platform fee, no additional charges, and free delivery starting at Rs 99.
The move comes soon after Zepto removed its platform fee and began offering free delivery with no minimum order value, following its $450 million fundraise. The platform fee or handling fee is typically meant to offset operational costs such as app maintenance and payment processing. This contributes directly to platform revenue while the delivery charges are passed on to the rider as part of per-order payouts.
According to Moneycontrol, Swiggy’s Instamart delivered over 100 million orders in Q2 FY26, charging an average handling fee of Rs 9.80 per order. With an average order value (AOV) of Rs 697, most users now qualify for free delivery under the new offer. This means Swiggy could be foregoing nearly Rs 99 crore in quarterly handling fee revenue, though actual numbers may vary depending on order mix and eligibility.
Rising competitive intensity
Backed by its recent fundraise, Zepto reportedly crossed 20 lakh daily orders during the Diwali week and is investing heavily in offers and replenishment speed to consolidate its position, Moneycontrol reported.
Meanwhile, Blinkit is in the middle of one of the sector’s most aggressive expansions by adding 271 new dark stores in Q2 FY26 to take its total to 1,816, with a target of 3,000 stores by March 2027.
For Swiggy, the fee waivers come amid a strategic shift from expansion to retention. The company added just 40 new dark stores during the September quarter, taking its total to 1,102, compared to Blinkit’s 271 additions.
Instamart’s metrics suggest continued growth momentum. Its revenue rose 102% year-on-year in Q2 to Rs 1,038 crore, while its gross order value (GOV) more than doubled to Rs 7,022 crore, according to the company’s quarterly filings. Swiggy’s board is also scheduled to meet on November 7 to consider a Rs 10,000-crore qualified institutional placement (QIP) that could strengthen its balance sheet and give it flexibility to pursue growth in both food delivery and quick commerce, Moneycontrol reported.