Zepto rolls out loyalty programme Zepto Pass for free deliveries and discounts

Quick commerce startup Zepto has launched a membership programme called Zepto Pass to provide unlimited free deliveries and up to 20% discount on all grocery products. The move aims to enhance customer loyalty and retention by offering attractive discounts to match prices with offline grocers.

On February 19, YourStory reported that the Nexus Venture Partners–backed company is testing a subscription plan at an introductory price of Rs 19 per month to random users across cities including Delhi and Kolkata.

Zepto piloted the feature with 5% of its user base for a month and claims to have seen rapid adoption, with almost a majority of orders coming from Zepto Pass subscribers within two weeks during the pilot, it said in a statement on Thursday.

According to the company, Zepto Pass subscribers spend more than 30% on the app after opting for the loyalty programme which resulted in their monthly retention improving by 10%.

The price of Zepto Pass lies between Rs 19 and 39 per month for a majority of customers, the statement said.

“Quick commerce is being adopted rapidly in India and Zepto Pass is slated to accelerate that adoption even further. By giving customers deep discounts sustainably and with 10-minute delivery, quick commerce starts becoming an exciting option even when compared to discount grocers in the offline segment,” Devendra Meel, VP of Strategy and Head of Zepto Pass, said.

The move comes months after Zepto entered the coveted unicorn club after raising $200 million at a valuation of $1.4 billion in a Series E funding round led by US-based private market investment firm StepStone Group.

The subscription plan is part of Zepto’s effort to top the quick commerce market by taking on Prosus-backed Swiggy’s One membership and BigBasket’s bbstar plan. Most recently, Swiggy introduced a lite version of its programme to lure cost-conscious users.

Membership programmes have become increasingly important for ecommerce firms, enabling them to add value to regular users and drive new users to their platforms.

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Zepto is also looking to float an initial public offering (IPO) by early 2025, making its push for sustainable growth more important than ever.

In August 2023, Co-founder and CEO Aadit Palicha did not divulge details about how much money the firm is looking to raise through the public listing, but noted that the $200 million fundraising is a pre-IPO round and is part of a “capital-building exercise”.

“Even after offering compelling value to customers with Zepto Pass, we continue to be on track to be near PAT positive in 2 quarters! This is because our profitability improvement is coming primarily from cost reduction through supply chain excellence, which gives us the ability to pass value back to customers sustainably,” CEO Palicha said on Thursday.