Quick commerce platform Zepto is under fire from the founders of several direct-to-consumer (D2C) brands after the launch of its new ‘Swap and Save’ feature. The tool, which is still in its beta phase, automatically suggests cheaper product alternatives to items placed in a customer’s cart. While Zepto describes the feature as a customer-first move designed to help users save money, many D2C brands see it as a threat to product discovery, pricing integrity, and long-term brand loyalty.
The controversy has ignited fresh debate over the evolving power dynamics between quick commerce platforms and independent brands, especially as platforms like Zepto continue to expand their advertising-driven revenue models.
D2C Founders Cry Foul Over Brand Undercutting
The backlash was swift and vocal. D2C brand owners expressed their dismay on social media, questioning the fairness of a system where premium products are automatically swapped out for lower-priced alternatives. Rishabh Harish, founder of sustainable fashion label Wellbi, took to X to ask whether competing brands were now expected to run ads just to stay in a customer’s cart. He argued that the feature not only devalues premium positioning but forces independent labels to fight a losing battle on pricing, which often comes at the cost of quality and sustainability.
Others echoed similar sentiments. Vanshi Agrawal, founder of Kidara Toys, pointed out that the feature could escalate advertising expenses for brands that now have to invest more aggressively to prevent being “swapped out.” She noted that even maintaining a presence in a consumer’s cart may soon require paid promotion. This pressure, founders say, undermines the user-brand connection they’ve worked hard to build and shifts power firmly into the hands of the platform.
Rising Ad Pressure and Visibility Challenges
Industry consultants have warned that features like Swap and Save could usher in a new wave of platform-controlled ad spending, where brands must pay not only for top-of-funnel visibility but also for mid-funnel retention. Aditya Kamath, founder of Rising Suns, a consultancy that supports D2C brand launches, said the model could force brands to discount their products just to appear as viable alternatives—or worse, pay to avoid being replaced altogether. According to Kamath, this creates a cycle that is exhausting for emerging labels and favors only large-scale advertisers.
These concerns are especially pronounced among smaller D2C brands that rely heavily on marketplaces like Zepto for exposure. As the battle for consumer attention intensifies, brands with tighter margins and limited marketing budgets are finding it harder to compete. The feature, while seemingly helpful to consumers, may significantly impact the economic feasibility of operating on such platforms.
Quick Commerce’s Growing Dependence on Ad Revenue
The timing of the controversy aligns with the surge in advertising revenue being reported across the quick commerce sector. According to a report by Elara Capital, the collective annualized ad revenue run rate of Blinkit, Zepto, and Instamart has reached an estimated ₹3,000–3,500 crore. Zepto itself accounts for about 35% of that share, second only to Blinkit’s 45%. Co-founder and CEO Aadit Palicha recently disclosed that Zepto’s advertising vertical has grown from $40 million to $200 million in annualized run rate within the past year alone.
This spike in ad revenue highlights the strategic direction platforms are taking, increasingly leaning on monetizing brand visibility. But as advertising becomes the default model for success on these platforms, smaller D2C players may be priced out of relevance, undermining the diversity and innovation that such brands typically bring.
Consumer-Centric or Commoditizing? The Debate Continues
Zepto, for its part, has defended the feature. In an official statement, co-founder Kaivalya Vohra said that Swap and Save is an early-stage experiment born out of customer obsession and a desire to meet evolving needs. The company has not yet formally incorporated feedback from brands, as the feature remains in testing and is expected to be refined and potentially rolled out more widely in June.
Despite the company’s reassurance, not all stakeholders are convinced. Aakar Jain, founder of The Marketplace Guru, criticized the feature for encouraging a race to the bottom on price. “Even if the product isn’t cheap, the platform starts to feel cheap,” he said in a LinkedIn post. Critics argue that training customers to prioritize lower prices above all else devalues brand identity, innovation, and quality.
As Zepto continues to evolve its offering, the feature’s long-term fate remains uncertain. However, the response from D2C brands sends a clear message: customer value should not come at the cost of brand erosion. Whether Zepto refines its approach or pushes ahead could influence how other platforms navigate similar pricing nudges in the future—and whether D2C brands continue to view quick commerce as a viable growth channel.
