The membership, which comes at a fee of Rs 99 per month, offers unlimited free deliveries on orders worth more than Rs 99 and discounts of up to 20% based on the order value, according to people aware of the programme.
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While some users are being offered discounts for orders worth more than Rs 299, the threshold for the others is Rs 699, the people cited earlier said, adding that the company is offering this service to some at an introductory price of Rs 19.
A spokesperson for Mumbai-headquartered Zepto said, “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.”
Zepto was launched by Aadit Palicha and Kaivalya Vohra in April 2021. With ‘Pass’, it has become the second quick commerce firm after Swiggy Instamart to offer subscription benefits.
Swiggy’s listed rival Zomato, on the other hand, does not extend benefits from its Gold subscription to its quick commerce service Blinkit.
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For food delivery and quick commerce firms, subscription is emerging as an important tool for boosting usage and user loyalty.Zomato, in its report for the June quarter, had said its ‘Gold’ programme contributed more than 30% of the total gross order value (GOV) of its food business, which for the quarter stood at Rs 7,318 crore.
Swiggy, on the other hand, has been trying to expand its ‘One’ subscription by bundling it with telecom subscriptions and banking products such as credit cards.
Swiggy One costs Rs 1,299 for three months and does not offer any discounts, whereas Zomato Gold costs Rs 999 for the same duration. However, both firms offer deep targeted discounts to customers–ET found three-month subscriptions of Zomato Gold going for Rs 99 and Rs 249 to different customers, whereas three-month subscriptions of Swiggy One were available for Rs 39 and Rs 149.
At the same time, quick commerce firms have also been finding new ways to increase their revenue through avenues like advertising. On February 8, Blinkit said its advertising revenue jumped by more than three times in the December quarter compared with the same period a year ago.
For the financial year ended March 2023, Zepto’s revenue grew by more than 14 times to Rs 2,024 crore. However, the company incurred a loss of Rs 1,272 crore in FY23, over three times wider than the previous year.
