How Zepto's New Subscription Service Became The Game-Changer In E-commerce Retailers Need In India?

Zepto, one of the quick commerce industries in India, has launched its paid subscription service called Zepto Pass. This new service offers greater discounts to customers, which will increase competition in the country's growing quick commerce market.

According to the company, users who subscribed to Zepto Pass increased their spending on the app by over 30%, and there was a 10% increase in monthly retention.

Zepto membership costs Rs 99 per month and gives you unlimited free deliveries on orders over Rs 99. You also get discounts of up to 20% based on your order value. Some users are offered discounts for orders over Rs 299, while others need to reach Rs 699. Some are even getting this service for an introductory price of Rs 19.

The subscription is priced between 19 and 39 rupees per month. Now, the question is how you get the benefits from a subscription. It offers unlimited free deliveries and up to 20% off on grocery items for most customers.

Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra, dropouts of the computer science degree course at Stanford University.

Image source LinkedIn

The company promises 10-minute grocery deliveries through its network of Dark stores nationwide. It competes with other players like Swiggy's Instamart, BigBasket's BBNow, Zomato's Blinkit, and Google-backed Dunzo in the highly competitive quick commerce arena.

This significant move to launch Zepto Pass aims to drive customers' adoption of quick commerce. Devendra Meel, vice president, strategy, and head of Zepto Pass, stated that the company hopes to draw a million customers through this subscription programme within a month of the rollout.

And, guess what? Within one after launching Zepto Pass miracle happened:

The 'Zepto Pass', became the second quick commerce firm to offer subscription benefits after Swiggy, Instamart, and Zomato. On the other hand, it doesn't extend benefits from its Gold subscription to its quick commerce service Blinkit.

The subscription model is expected to raise the Average order value (AOV) offsetting the cost of discounts through a mix of company and brand funding. The company is also on track for a public listing in the fiscal year 2025-2026 (FY26).

Quick commerce firms in India are speeding up to meet customer demands, which is expanding their market presence and diversifying their product offerings. Consulting firm RedSeer estimates that India's quick commerce market is expected to touch $5.5 billion by 2025, up from $0.3 billion in 2021.