The fact that Zepto has just decided to shut down its subscription service, Zepto Daily, is an important inflection point of the Indian quick-commerce industry. The move comes as the company prepares for a public listing and signals a shift from aggressive, subsidized acquisition toward high-intent retention and unit economics optimization.
The Context: From Hyper-Growth to Rationalization
Zepto, one of India’s leading quick‑commerce players, launched Zepto Daily in late 2024 as a low‑cost, subscription‑based loyalty plan designed to anchor daily‑habit orders. The programme replaced the earlier Zepto Pass and offered free delivery above a minimum basket value plus select discounts, with some users paying as little as ₹1 per month in pilot cities. After an extended pilot phase, Zepto has now removed the Zepto Daily tab from its app, effectively shutting down the subscription tier ahead of its planned IPO.
Data & Metrics
Early subscriber experiments under Zepto Pass were reported to show higher engagement among members, but according to industry observers, the subscription layer did not meaningfully improve long-term loyalty. Over time, internal assessments reportedly indicated that the subscription layer did not materially alter long-term loyalty; customers in the category have tended to chase faster delivery, lower prices, and deals rather than remain platform-loyal due to short-term variables such as the delivery time, the availability of the items, and one-time deals.
With Swiggy Instamart now among the few major players still operating a subscription tier, the segment continues to test whether recurring fees can structurally influence consumer behavior.
Analysis: The Shift to Targeted Retention
Zepto should be seen as part of a larger conflict between retention based on subscriptions and the transactional aspect of the 10 minute delivery: In a category where consumers optimize for price, speed, and availability, a flat monthly fee struggles to create structural stickiness. The company is moving towards more data-oriented incentives like free or selective discounts on high-value or dormant groups, instead of a single-size-fits-all subscription.
This is consistent with the economics of fast business, in which unit-margin pressure causes blanket perks to be difficult to maintain; operators are now moving toward cohort-specific nudges as opposed to blanket membership.
Implications for the Ecosystem
To the founders, investors, and product leaders, Zepto can serve as the case study of value-based and price-based retention. With Zepto preparing its financials towards an IPO, it is obvious that the emphasis has changed towards value creation in the long-term rather than vanity in number of subscribers.
What do you think of the Subscription vs. Execution debate of on-demand services? Does a loyalty program in fact modify consumer behavior in a category that is characterized by urgency?
