Zepto banks on ‘Everyday Low Prices’ strategy to drive growth, improve unit economics

Quick commerce company Zepto is doubling down on its “Everyday Low Prices” (EDLP) platform philosophy as it seeks to strengthen customer retention, improve affordability and drive profitability through operational efficiency and scale.

Globally, some of the most durable retail businesses have been built around the EDLP model, where lower costs enable lower prices, lower prices drive higher purchase frequency and higher volumes create a scale that further reduces costs.

Zepto is applying this principle to quick commerce through an operating model built around network densification, shorter delivery distances, higher throughput and lower cost per order.

The company believes that India’s quick commerce market has already delivered on convenience and hyperlocal fulfilment. Going forward, it aims to focus on the third pillar of consumer value — affordability — by offering transparent pricing and a low-fee structure while continuing to improve operational efficiency.

Zepto believes its EDLP strategy will be supported by a rigorous focus on cost excellence across its dark store network, supply chain and delivery operations.

The company expects these efficiencies to create sustainable cost advantages that can be passed on to users in the form of better value and lower fees.



The benefits of this approach are already beginning to reflect in operating metrics. Total cost per order declined from ₹181 in the second quarter of FY26 to ₹128 in the fourth quarter of FY26. During the same period, orders per day per store increased from 1,433 to 2,140, indicating higher throughput and improved utilisation across the network.

Adjusted EBITDA loss per order improved from negative ₹110 in Q2 FY26 to negative ₹59 in Q4 FY26, while free cash flow loss per order improved from negative ₹103 to negative ₹42 during the same period.

By consistently delivering value, the company aims to encourage repeat purchases and deepen user engagement over time. Higher retention reduces dependence on customer acquisition spending.

Weekly transacting users on the platform grew to 9.2 million by March 2026.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *

8 + 7 =