Zepto Merges Tabs, Waives Fees to Boost Transparency Ahead of IPO

In the coming weeks, the quick commerce platform Zepto is set to make significant changes to its pricing structure and website layout. The firm plans to merge its Super Saver tab with the main Zepto tab and waive off additional fees like fulfilment charges and handling fees.

This move is expected to reduce clutter on the Zepto website and provide better clarity to consumers on cart value and other charges. However, the changes may have some impact on the platform's average order value.

The planned updates come at a time when Zepto and several other online marketplaces have come under the government's radar for using 'dark patterns' - sneaky online practices designed to mislead users into making unintended purchases or subscriptions. In June, the Central Consumer Protection Authority directed these platforms to conduct self-audits and eliminate such practices within three months.

India is the first country to issue dedicated guidelines to regulate dark patterns, with the aim of ensuring the rapid growth of digital commerce is matched by ethical standards and consumer safeguards.

Zepto, which has raised over $1.95 billion and is valued at more than $5 billion, is also re-evaluating its growth strategy to curb losses ahead of a planned public listing. The firm posted a loss of ₹1,248 crore in the financial year ended March 2024, even as its revenue surged two-fold to ₹4,454 crore.

As Zepto and its competitors like Swiggy Instamart and Blinkit battle for market share, the focus on providing cart-level value through features like 'Maxx Saver' and 'Super Saver' has become crucial. However, these discounts and loyalty programs can also put significant pressure on the firms' margins.