Indian quick-commerce startup Zepto is moving away from aggressive discounting and scale-centric growth to improve unit economics following a postponed IPO. Meanwhile, food delivery firm Zomato is consolidating customer support teams, resulting in layoffs in Hyderabad, reflecting ongoing cost-optimization efforts in India’s tech-driven consumer sectors.
- Zepto reduces platform discounts and hikes delivery minimums
- Launches Zepto Club subscription to enhance retention
- Zomato cuts 240 Hyderabad customer support jobs amid restructuring
What happened
Zepto, the fast-growing quick commerce firm in India, deferred its IPO due to investor concerns over its $7 billion valuation, cash burn, and low average order value. In response, the company has increased delivery fee thresholds from ₹199 to ₹299 during peak hours while cutting back platform-led discounts from up to 20% to a targeted range of 14-16%.
Additionally, Zepto launched a paid membership program called Zepto Club, offering cashback, priority service, and exclusive deals. On another front, Zomato has laid off approximately 240 employees from its Hyderabad customer support operations, consolidating those functions into its Gurugram center as part of broader efficiency measures.
Why it matters
Zepto’s strategic shifts mark a significant departure from its prior growth-at-all-costs approach, emphasizing profitability and customer retention through premium offerings over steep discounts. This is a critical pivot as Zepto faces dwindling user base and limited cash runway of about one year, making disciplined spending essential.
Zomato’s layoffs highlight operational streamlining in India’s competitive food delivery market, where automation and cost controls are increasingly necessary. These moves from leading players indicate that rapid expansion strategies may be giving way to sustainable business models amid investor scrutiny and market pressures.
What to watch next
Investors and industry watchers should track how successfully Zepto can boost order values and margins through its loyalty program and premium product push without triggering steep customer attrition to rivals. Its ability to prove profitable growth will be a bellwether for quick commerce viability in India.
For Zomato, observing the impact of its customer support consolidation on service quality and cost structure will be important. Broader trends around layoffs, automation adoption, and regulatory compliance—such as its ban on analogue dairy products—will also shape the company’s operational resilience and market positioning.