Zepto, the quick-commerce unicorn, is experimenting with a membership program called Zepto Pass.
Priced at INR 99 per month, the membership offers unlimited free deliveries on orders costing INR 99 or more, and discounts of up to 20% on certain orders. While discounts are available to some users for orders of INR 299 or more, for others the threshold is INR 699 or more. The firm is currently offering the service to a targeted set of users, with some receiving an introductory price of INR 19.
With Zepto Pass, Zepto joins Swiggy Instamart as the second quick-commerce firm to provide subscription benefits. In contrast, Zomato, a rival of Swiggy, does not offer benefits from its Gold subscription to its quick-commerce service, Blinkit.
“We are constantly running dozens of small experiments to improve customer experience. Only a few of these experiments are brought to market, hence we do not comment on them,” a spokesperson for Zepto said, declining to give further details about the plan.
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Subscriptions play a significant role for food-delivery and quick-commerce firms in increasing usage and fostering user loyalty. In its report for the quarter ended June 30, Zomato disclosed that the Gold program contributed over 30% of the total gross order value (GOV) for its food business, amounting to INR 7,318 crore for that quarter.
In contrast, Swiggy has been striving to broaden the reach of its One subscription by packaging it with telecom subscriptions and financial products like credit cards.
Swiggy One is priced at INR 1,299 for a three-month period without any discounts, while Zomato Gold is offered at INR 999 for the same duration. However, both companies provide substantial targeted discounts to customers. Three-month subscriptions of Zomato Gold were found to be priced at INR 99 and INR 249 for different customers, while three-month subscriptions of Swiggy One were available at INR 39 and INR 149.
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Quick-commerce companies are exploring innovative methods to boost their earnings, including leveraging advertising opportunities. Blinkit reported a significant surge in its ad revenue during the December quarter, with a more than threefold increase compared to the corresponding period last year, as announced on February 8.
In the financial year that ended in March 2023, Zepto’s revenue surged over 14 times, reaching INR 2,024 crore. However, the Mumbai-based company incurred a loss of INR 1,272 crore in FY23, which was over three times wider than the previous year.
Zepto’s FY23 revenue soars to INR 2,024 Cr with 14-fold growth, but losses triple
