Zepto’s Hefty Employee Costs: Paying Big to Win the Quick Commerce Race
Zepto’s Employee Costs Soar, Rivaling Giants Zomato and Swiggy
Quick commerce startup Zepto is making headlines, not just for its swift deliveries but also for its ambitious spending on talent. According to sources, the company shelled out a whopping Rs 95 crore in salaries to its 3,000 employees in April. While this marked a slight dip from the Rs 115-120 crore spent in March, it still paints a picture of substantial fixed costs, growing year-on-year.
Zepto has built a reputation for aggressively recruiting top talent, often offering salaries 2-3 times higher than industry averages. This strategy, while costly, reflects the fierce competition in the quick commerce space.
80% of the Wage Bill: Zepto’s Spending Compared to Rivals
What’s particularly striking is that Zepto’s monthly wage bill, at around Rs 100 crore, is already 80% of what Swiggy, a much larger company with a workforce of 5,500 and diverse business units, pays out. Swiggy’s monthly wage bill is estimated to be Rs 120-130 crore.
Even when compared to Zomato, Zepto’s spending is noteworthy. Zomato, with over 5,000 employees and a wider range of businesses, including food delivery, quick commerce, and events, spends around Rs 160-170 crore on wages each month.
The Quick Commerce Arms Race
The intense competition in quick commerce, with Blinkit, Zepto, and Swiggy Instamart vying for market share, has driven up salaries. Companies are aggressively poaching talent, offering lucrative packages to gain an edge. This trend is likely to continue as the industry matures.
Although quick commerce is still in its early stages, the stakes are high, and companies are willing to invest heavily to secure their position in this rapidly evolving market.
