“Zepto’s Pricing Tactics Spark Consumer Concerns Amid Quick Commerce Boom”

In the rapidly evolving landscape of India’s quick commerce sector, Zepto has emerged as a significant player, challenging established names like Blinkit and Swiggy Instamart. However, recent consumer reports have raised concerns about Zepto’s pricing strategies, including alleged discrepancies based on device type and hidden charges, prompting discussions about transparency and fairness in online grocery delivery.

“Device-Based Pricing Raises Eyebrows”

Several users have reported instances where the price of the same product varies depending on the device used to access the Zepto app. For example, a customer in Delhi noted that 500 grams of grapes were priced at Rs 65 on an Android device but surged to Rs146 on an iPhone. Such discrepancies have led to accusations that Zepto is employing dynamic pricing strategies that exploit perceived purchasing power based on device usage.

“Hidden Charges and User Experience Concerns”

Beyond pricing differences, users have also highlighted hidden fees that are not immediately apparent during the checkout process. Packaging charges, for instance, have been reportedly buried within GST invoices, only noticeable upon detailed examination. Additionally, Zepto’s loyalty program, Zepto Pass, which offers free delivery for orders above Rs 99, requires users to manually opt-in via an inconspicuous checkbox, leading many to miss out on the benefit unknowingly.

“Consumer Trust at Stake”

These practices have sparked a broader conversation about consumer trust in quick commerce platforms. While dynamic pricing and additional fees are not uncommon in e-commerce, the lack of transparency and the subtlety of these charges have led to feelings of betrayal among users. As one Bengaluru-based customer expressed, “Seeing higher prices just because I’m on an iPhone feels like a betrayal of trust. It’s not about the money—it’s about fairness.”

“Industry Response and Regulatory Scrutiny”

In response to these concerns, industry experts have defended dynamic pricing as a standard marketplace strategy, akin to airline ticket pricing or e-commerce discounts. However, they acknowledge the need for greater transparency. The Indian government has taken note, with the Central Consumer Protection Authority expanding its probe into price discrimination to include quick commerce platforms, following the enforcement of guidelines aimed at preventing manipulative digital practices.

“Impact on Traditional Retailers”

The aggressive pricing strategies of quick commerce platforms like Zepto have also drawn criticism from traditional retailers. The All India Consumer Products Distributors Federation has accused these companies of engaging in predatory pricing, undermining small retailers and leading to the closure of numerous kirana stores across the country. The federation has called for regulatory action to ensure a level playing field in the retail sector.

“Zepto’s Market Position and Future Outlook”

Despite the controversies, Zepto’s rapid growth is noteworthy. In FY24, the company reported revenues of Rs 4,454 crore, surpassing competitors Blinkit and Swiggy Instamart. Zepto has also made strides in improving its operational efficiency, reducing its contribution margin loss significantly. As the company continues to expand, addressing consumer concerns and ensuring transparent practices will be crucial for sustaining its market position.

“Navigating the Path Ahead”

Zepto’s rise in the quick commerce sector underscores the dynamic nature of India’s retail landscape. However, the recent allegations highlight the importance of transparent pricing and ethical business practices. As consumers become more vigilant and regulatory bodies intensify scrutiny, companies like Zepto must prioritize building trust and ensuring fairness to maintain their growth trajectory in a competitive market.