Flipkart Rolls Out INR 3 Platform Fee

Flipkart Minutes Introduces INR 5 Platform Fee Amid Intensifying Quick Commerce Race

SUMMARY

Flipkart has also rolled out platform fee of INR 5 on its quick commerce arm Flipkart Minutes

The move aligns Flipkart with other quick commerce players like Swiggy's Instamart, Zomato's Blinkit, and Zepto, who charge similar handling fees.

While the fee applies to Flipkart Minutes and the main ecommerce platform, it excludes Flipkart Grocery and Cleartrip, the company's travel vertical.

Walmart-owned Flipkart has introduced a platform fee of INR 3 on its ecommerce platform, sources close to the matter told Inc42.

Besides, the company has also rolled out platform fee of INR 5 on its quick commerce arm Flipkart Minutes.

This follows similar suites by Swiggy’s quick commerce business Instamart, Zomato’s quick commerce platform Blinkit and quick commerce major Zepto, who have introduced handling fees on their platforms.

INR 5 Platform Fee as seen on Flipkart Minutes

However, the fee will not be applicable on Flipkart Grocery orders or its travel vertical Cleartrip.

It is pertinent to note that Flipkart’s fashion arm Myntra already has a similar fee structure.

Yourstory reported the development first.

Flipkart’s introduction of the platform fee coincides with the company’s renewed push into the quick commerce space with Flipkart Minutes. The service is currently live in select pin codes, offering delivery within 8-16 minutes.

The move could be seen as an essential to boost overall revenues and profits.

Flipkart’s new fee puts it in line with some quick commerce companies, but differs from other major ecommerce players. Blinkit and Swiggy’s Instamart charge a handling fee of INR 4-5 per order, while Zepto’s fee is slightly higher at INR 9.99.

However, Amazon, Flipkart’s rival, currently does not impose any platform or handling fees. Similarly, Meesho, which reported profitability in Q3 2023, also operates without a platform fee.

The introduction of the platform fee comes as Flipkart continues to drive international sales for its parent company, Walmart. In Q2, Flipkart delivered double-digit topline growth with improving contribution margins.

Last month, foodtech companies Swiggy and Zomato reportedly hiked platform fee to INR 6 per order in key markets, including Delhi and Bengaluru.

Platform fee is a compulsory charge a customer has to pay apart from the GST and restaurant fee, even if the user subscribes to Zomato Gold or Swiggy One. The subscription provides the advantage of eliminating delivery charges imposed on the bill.