Exclusive: PhonePe's Pincode Begins Charging Handling Fee

Following in the footsteps of quick commerce and other delivery players, PhonePe-owned quick commerce platform Pincode has introduced a “handling fee” on orders served by it.

The quick commerce platform, which erstwhile touted “no hidden charges” as its USP, introduced the small-handling fee component recently, company sources told Inc42.

Pincode is currently charging a handling fee of INR 9, irrespective of the order size. PhonePe declined to comment on Inc42’s queries on the matter.

A message displayed on the app states that the handling fee is being levied for the platform’s upkeep. “The handling fees is a small charge that helps Pincode maintain and enhance the platform. This includes improving app features and ensuring smooth and secure experience for users,” the message reads.

The quick commerce company’s decision to levy the additional charge comes along with its move to increase the minimum order value for free deliveries to INR 99 from INR 89.

Pincode’s Asset Light Model

Pincode was initially on the Open Network for Digital Commerce (ONDC). After its launch, the app was quickly taken , including Mumbai, Delhi, Noida, Gurugram, Chennai, Hyderabad, Ahmedabad, Pune, and Kolkata within four months. Users could shop for products across categories like groceries, food, apparel, gadgets, and more.

However, after investing INR 90 Cr in two tranches between 2023 and 2024 in Pincode, PhonePe and develop its own marketplace infrastructure.

As a result, , where it offers grocery, , and other daily essentials. It plans to expand to Agra, Pune, Hyderabad, and Varanasi by the end of June 2025.

Unlike major quick commerce players, Pincode differentiates itself with its asset-light model. It partners with small retail stores, onboarding them directly onto its platform. Merchants upload their available stock-keeping units (SKUs) to a central catalogue provided by Pincode, with the company’s on-ground team assisting them until they are trained to manage it independently.

Pincode had onboarded about 700 retail stores by the first week of May.

It reported a loss of INR 107 Cr on an operating revenue of a mere INR 3.2 Cr in FY24.

Emergence Of Additional Charges In Quick Commerce

Although it is a first for Pincode, other major players in the industry have been for some time. Eternal-owned Blinkit, Swiggy Instamart and Zepto currently levy delivery fee, rain fee, convenience fee, processing fee, among others.

In the case of handling fee, Pincode’s fee of INR 9 is comparable to what the likes of Blinkit and Zepto charge.

Food delivery platforms like Zomato and Swiggy, as well as ecommerce platforms like Myntra, also charge platform fee, delivery fee, festive fee, among others.

The levy of an increasing number of fees by these players is part of their efforts to turn profitable.

(With inputs from Tapanjana Rudra.)

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