Several Direct-to-Consumer (D2C) brands and partner companies have raised serious allegations against the quick-commerce unicorn Zepto, accusing the platform of predatory and “exploitative” business practices.
According to a detailed investigative report released on April 26, 2026, the friction between the platform and its sellers has reached a breaking point as Zepto aggressively chases profitability ahead of its planned public listing.
1. The Core Allegations
Brands that rely on Zepto for distribution have highlighted three primary areas of concern:
- Advertising “Coercion”: Sellers allege they are under constant, intense pressure to spend a high percentage of their revenue on Zepto’s internal advertising tools. Brands that refuse to buy “visibility” or home-banner slots reportedly see their products “de-ranked” or buried in search results.
- The “Margin Squeeze”: Platform costs—including commissions, dark store handling fees, and 10-minute logistics levies—now frequently exceed 35% of the selling price. Some smaller brands claim that after accounting for these fees and mandatory discounts, they are losing money on every order.
- Retaliatory Tactics: The report suggests that any attempt by a brand to question these policies “comes at a cost,” with some alleging that Zepto has restricted their inventory capacity or delayed onboarding of new products as a form of leverage.
2. The “Middleman Tax” Debate
Industry analysts and founders on platforms like Reddit and LinkedIn are increasingly labeling quick commerce as the “New Landlord” of the digital age.
- High-Paying Tenants: Founders argue that they have traded expensive Meta (Facebook/Instagram) ads for an equally expensive “Digital Kirana tax.”
- The “Seven-Day” Rule: On Zepto, if a product does not hit specific velocity targets within its first week, it is often deprioritized. This “velocity-at-all-costs” model is criticized for favoring massive FMCG players over innovative, smaller D2C brands.
- Economic Sustainability: With advertising revenue for quick commerce platforms projected to hit ₹4,900 crore by the end of 2026, many fear these platforms are transitioning from sales channels into expensive “toll booths” for brand survival.
3. Zepto’s Stance: Efficiency over Fees
Zepto has historically defended its fee structure as a necessary component of its high-speed operational model.
- Profitability Targets: The company has stated it does not want to be “over-dependent on delivery fees” and is instead focusing on core operating efficiency.
- Zepto Pass: The platform points to its subscription loyalty program as a way to drive volume for brands without relying on per-order delivery charges.
- Market Position: Despite the losses and brand friction, Zepto maintains a strong 21% market share in the Indian quick-commerce sector, trailing only Blinkit (45%) and Swiggy Instamart (27%).
4. Industry Context: The “Profitability Push”
The tension at Zepto is a symptom of a wider trend in the Indian startup ecosystem in 2026. As venture capital becomes more disciplined, platforms are squeezing their supply chains to show positive EBITDA numbers.
| Platform | Estimated Market Share | Reported Margin Pressure |
|---|---|---|
| Blinkit | 45% | High; moving toward consistent profitability. |
| Swiggy Instamart | 27% | Moderate; benefiting from IPO-led consolidation. |
| Zepto | 21% | Very High; currently in a “war of attrition” phase. |