Zepto has begun linking its free-delivery threshold to demand levels, raising the minimum order value for free delivery to as high as Rs 299 in some locations and during peak hours, marking a further shift away from the aggressive fee waivers that defined the quick commerce sector last year.
Pre-IPO Pivot
The move comes as the company prepares for a public listing and as the industry increasingly focuses on profitability and unit economics after an extended period of customer acquisition-led discounting. Zepto has filed its draft red herring prospectus with Sebi through the confidential route for an estimated Rs 11,000 crore initial public offering, with the updated filing expected to become public in the coming days.
A notification on the app states that free delivery is available only on orders above Rs 299, with the company attributing the change to high demand. Orders below the threshold attract a delivery charge of Rs 30. While handling fees continue to be waived, the dynamic threshold effectively introduces a demand-linked pricing mechanism, similar in effect to surge pricing.
Steady Retreat
The change marks a departure from the company’s “All new Zepto experience” launched in November 2025, when it removed delivery, handling, rain and surge fees on orders above Rs 99. The campaign was positioned as a major differentiator in the market, with the company highlighting the elimination of surge charges and offering the lowest free-delivery threshold among major quick commerce platforms.
Since then, Zepto has steadily raised the threshold. It increased the minimum order value for free delivery to Rs 149 in January and later to Rs 199 for select users, bringing it closer to industry norms. The latest revision goes further by making the threshold variable based on demand conditions.
The broader market has also moved away from blanket fee waivers. Swiggy’s Instamart, which had introduced a similar fee-waiver programme with free delivery on orders above Rs 299, ended the initiative in January, reinstating handling charges and limiting surge-fee waivers to subscribers. Blinkit, meanwhile, increased handling fees while retaining its Rs 199 free-delivery threshold.
Last month, Instamart partially eased its stance by introducing wallet credits that offset delivery fees on lower-value orders and waiving delivery charges on select categories and private-label products. The move reflected a more targeted approach to incentives rather than broad-based subsidies.
Zepto did not respond to a request for comment till the time of going to the press.