Quick commerce platforms Blinkit and Zepto have revised their commission models to enhance revenue and improve profitability in an increasingly competitive market. Zepto has gradually raised commissions on both users and brands to optimize its unit economics, while Blinkit has introduced a variable commission model for brands and sellers.
The rapid expansion of quick commerce services has led to fierce competition, significantly increasing operational expenses. This financial strain has raised concerns among investors, leading to a decline in market value for publicly traded firms such as Zomato, which owns Blinkit, and Swiggy, the operator of Instamart.
Zepto’s strategic commission adjustments align with its plans for an initial public offering (IPO) later this year. However, the recent downturn in stock markets since December has created uncertainty for companies planning to go public.
Blinkit, on the other hand, has revised its commission structure to increase its total take rate—the percentage of gross order value (GOV) retained as commission. Zepto’s take rate has already climbed to 22-23%, and as it nears an annualized $4 billion in gross sales, further increases are expected. Zepto, which was last valued at $5 billion, reported an annualized gross sales figure of $3 billion in January 2025.
Both Blinkit and Zepto are aggressively expanding their footprint, each operating nearly 1,000 dark stores. Zepto has also been in discussions with third-party fleet operators, including Ola, to optimize its delivery costs. These strategies are crucial for maintaining efficiency and profitability in a highly competitive market.
Previously, Blinkit followed a fixed commission structure, ranging between 3% and 18% depending on the product category. However, starting March 13, the platform is shifting to a dynamic commission model, where rates will depend on the selling price of items within the same category. For example:
Products under Rs 500 will have a 2% commission.
Items priced between Rs 500 and Rs 700 will be subject to a 6% commission.
Products costing Rs 1,200 and above will attract an 18% commission.
These rates apply only to marketplace transactions, while additional charges for storage, warehousing, and delivery bring the total retained share of quick commerce platforms to 30-35% of the selling price. Larger brands with stronger negotiating power tend to secure better commission deals.
According to Morgan Stanley, Blinkit’s take rate for the October-December quarter stood at 17.9%, reflecting a 0.91 percentage point drop from the previous quarter and a 0.24 percentage point decline year-on-year.
A brokerage report by Bernstein noted that quick commerce platforms secure higher take rates from direct-to-consumer (D2C) brands. Their analysis found that:
Blinkit has a higher proportion of new-age brands, which make up 39% of its portfolio.
Zepto and Instamart have 31% and 33% of their brand mix from D2C brands, respectively.
Conclusion
As Blinkit and Zepto refine their business models to enhance profitability, their revised commission structures reflect a strategic response to market challenges. With increasing competition and rising operational costs, these quick commerce giants are focusing on optimizing revenues while preparing for long-term growth.