Blinkit & Zepto Hike Commissions: Check Revenue Strategy and Commission Model

In a strategic shift aimed at bolstering profitability and maintaining a competitive edge, quick commerce giants Blinkit and Zepto are raising commission rates for sellers and brands. As operational expenses surge and competition intensifies, both platforms are revising their revenue models to enhance unit economics, improve investor confidence, and sustain long-term growth.

Quick Commerce Players Adjust Commission Structures

Blinkit, a subsidiary of Zomato, and Zepto, one of its fastest-growing rivals, have recently revised their commission structures to counter mounting cash burn and improve financial stability. According to a report by The Economic Times, Zepto has steadily increased commissions on both brands and sellers, pushing its take rate—the percentage of gross order value (GOV) retained as revenue—to an estimated 22-23%.

On the other hand, Blinkit is moving away from its fixed commission model to introduce a dynamic, tiered structure, which will take effect from March 13, 2025. This change reflects a growing industry trend where platforms seek to maximize revenue while adapting to shifting market conditions.

Both companies are under intense pressure to achieve profitability, especially as they compete against Swiggy’s Instamart and other emerging players. The stock market downturn since December 2024 has further strained investor confidence, making revenue optimization a critical focus area. Zepto’s planned IPO later this year has also increased the urgency for the company to demonstrate strong financial fundamentals.

Why Are Blinkit and Zepto Raising Commissions?

The quick commerce sector in India has experienced unprecedented growth, with Blinkit and Zepto each operating nearly 1,000 dark stores across the country. However, this rapid expansion has come at a cost, leading to:

• Escalating operational expenses, including logistics, warehousing, and last-mile delivery.
• High cash burn rates, requiring a more sustainable revenue model.
• Increased investor scrutiny, as firms seek a path to profitability.

For Zepto, the commission hikes align with its goal of reaching a $4 billion annualized gross sales run rate, up from $3 billion in January 2025. The company, last valued at $5 billion, is aiming to position itself as a leading quick commerce player ahead of its IPO.

Meanwhile, Blinkit is focusing on increasing its take rate, which was recorded at 17.9% in Q3 FY2024, according to Morgan Stanley. This was a slight decline from previous quarters, signaling the need for revenue adjustments.

Blinkit’s New Variable Commission Model: A Key Shift

Blinkit’s shift to a dynamic commission model marks a major departure from its earlier fixed-rate system, which previously ranged from 3% to 18% based on product categories. The new structure, effective from March 13, 2025, will introduce tiered commissions based on product pricing:

• Products priced below ₹500: 2% commission
• Items between ₹500 and ₹700: 6% commission
• Products priced ₹1,200 and above: 18% commission

These revised rates apply only to marketplace transactions, while additional charges for storage, warehousing, and delivery could push Blinkit’s total revenue share to 30-35% of the selling price.

Larger brands with strong negotiation power may secure better terms, while smaller sellers could face higher costs, potentially impacting their profitability.

Zepto’s Revenue Strategy: Commission Hikes and Operational Optimization

Zepto’s focus isn’t limited to just increasing commissions. The company is also working on improving operational efficiency by:

• Exploring partnerships with third-party fleet operators like Ola Group to reduce delivery costs.
• Expanding its network of dark stores to enhance fulfillment speed and reach.
• Strengthening its D2C (direct-to-consumer) brand partnerships, which have higher profit margins than traditional FMCG products.

With its take rate already at 22-23% and projected to rise further, Zepto is positioning itself for stronger revenue generation ahead of its IPO.

The Growing Role of D2C Brands in Quick Commerce

A recent Bernstein report highlights how D2C (direct-to-consumer) brands are becoming a key driver of profitability for quick commerce platforms. These brands typically offer higher margins, are more flexible with pricing and commissions, and contribute significantly to revenue growth.

Among leading quick commerce platforms, the share of D2C brands in their total product portfolios is as follows:

• Blinkit: 39%
• Swiggy Instamart: 33%
• Zepto: 31%

With consumer preference shifting towards online-first brands, quick commerce players are leveraging D2C partnerships to drive profitability while reducing dependence on traditional FMCG products.

Challenges Ahead: Market Volatility and Investor Sentiment

Despite the revenue potential of increased commissions, both Blinkit and Zepto face significant challenges:

1. Market Volatility: The stock market downturn since December 2024 has led to increased investor caution. This could impact Zepto’s IPO prospects and Blinkit’s growth trajectory.
2. Seller Backlash: Higher commissions may lead to dissatisfaction among brands and sellers, especially smaller businesses that operate on thin margins.
3. Consumer Pricing Sensitivity: If brands pass on higher commission costs to consumers, it could lead to price increases, potentially impacting demand.

What Lies Ahead for Quick Commerce in India?

As Blinkit and Zepto double down on profitability, their evolving strategies reflect broader trends shaping India’s quick commerce sector:

• Dynamic pricing models are replacing fixed commissions to optimize revenue.
• Operational efficiency measures, such as third-party delivery partnerships, are being explored to cut costs.
• D2C brands are emerging as high-margin growth drivers, reshaping product assortments on these platforms.

While these measures could set the stage for long-term sustainability, the challenge remains in balancing revenue growth with seller and consumer satisfaction.

With Zepto aiming for a $4 billion gross sales run rate and Blinkit refining its commission model, the battle for quick commerce dominance in India is heating up. However, navigating costs, competition, and investor expectations will be critical for sustained success.

As of March , 2025, the landscape of quick commerce in India is evolving rapidly, and the coming months will be crucial in determining how these platforms adapt and thrive in a highly competitive market.