Days after quick commerce major Zepto introduced the elimination of handling and surge charges across all orders, Swiggy’s Instamart has launched its own fee waiver initiative. The move comes with a higher order value threshold at Rs 299, compared to Zepto’s Rs 99 and is currently positioned as a limited-duration offering under its ongoing “Mega Savings Festival” running until November 7.
Under the initiative, Instamart is waiving delivery, handling, and surge fees on all orders above Rs 299. While Swiggy One subscribers continue to enjoy free delivery starting at Rs 199, non-subscribers can also now avail zero-fee delivery at order values above Rs 299. Handling, and surge charges have been suspended for all users above the Rs 299 threshold. The company has also waived off convenience fee previously charged on cigarette and tobacco products above this threshold.
The changes at Instamart appear to be a direct and urgent response to Zepto’s aggressive pricing re-structure unveiled earlier this week. Zepto’s ‘All New Zepto Experience’ initiative entirely removed handling and surge fees across all orders, irrespective of the cart value. Zepto’s threshold for free delivery, which has always been Rs 99, continues to be in effect.
Despite the competitive response from Instamart, Zepto remains the most aggressively priced quick commerce player currently. A comparison of the fee structures shows Zepto’s significant structural advantage across low and mid-value baskets.
For orders below Rs 99, where Zepto charges only Rs 30 as a delivery fee (with all handling, surge and small cart charges waived), Blinkit imposes total fees of Rs 54 (comprising Rs 30 delivery, Rs 4 handling, and Rs 20 small cart charge). Instamart is the most expensive in this bracket, levying approximately Rs 64.66 in total fees, which includes Rs 30 delivery, Rs 9.80 handling, Rs 15 small cart fee, along with 18% GST charged separately on these fees.
The contrast becomes more pronounced for orders between Rs 99 and Rs 199. Zepto waives all fees entirely, meaning customers pay only for products. By contrast, Blinkit continues charging Rs 34 in additional fees (Rs 30 delivery + Rs 4 handling) for orders up to the Rs 199 threshold post which delivery fee is waived off. Instamart users in this range still face total fees of approximately Rs 46.96 (Rs 30 delivery and Rs 9.80 handling, plus 18% GST).
The pricing gap continues even for orders between Rs 199 and Rs 299, where Zepto still charges nothing. In this range, Blinkit waives its delivery fee but continues to levy its Rs 4 handling fee. Instamart, for its non-subscribers, charges a total of approximately Rs 30.44 (comprising Rs 16 delivery, Rs 9.80 handling, and 18% GST on those fees). For Swiggy One subscribers, the delivery fee is waived, but the handling fee and GST still apply, resulting in a charge of Rs 11.56.
Instamart’s zero-fee offer only achieves parity with Zepto on orders above Rs 299. Industry observers view this response as a tactical defence to prevent loss of market share. Swiggy did not immediately respond to a request for comments at the time of going to the press.
Meanwhile, Eternal’s Blinkit, the third major player in the quick commerce space and the current market leader by market share, has not yet announced any structural changes or promotional fee waivers in response to the escalating competition.
Industry observers suggest the escalating price war signals a renewed focus on order volumes, and customer acquisition, potentially at the cost of short-term unit economics. While customers stand to benefit from the pricing war, the industry’s path to profitability is expected to be further protracted.