ED Probe on Parimatch Reaches Zepto Deliveries.. L

The Enforcement Directorate (ED) has widened its probe into banned betting site Parimatch, bringing quick-commerce startup Zepto under scrutiny after flyers promoting Parimatch were allegedly slipped into customer orders. Zepto denies any operational role, claiming the ads were placed via a third-party agency in March 2025.

Investigation has further revealed that the platform promoted betting‑related advertisements through leading quick‑commerce applications and circulated promotional material along with grocery deliveries to attract and onboard new users. 

What Happened

• ED probe: Authorities are investigating offshore betting operations linked to Parimatch, banned in India since 2022.
• Zepto involvement: Flyers and ads promoting Parimatch were allegedly distributed through Zepto’s delivery network.
• Government advisory: A 2022 Ministry of Information & Broadcasting warning explicitly prohibited platforms from carrying betting ads.
• Money laundering angle: The ED is examining possible violations of foreign exchange rules and laundering of betting funds.

Zepto’s Response

• Denial of operational role: Zepto insists it had no direct relationship with Parimatch and that the campaign was managed externally by a third-party media agency.
• Cooperation with ED: The company says it has shared all requested information and connected investigators with the external agency.
• Clarification: Zepto emphasized it was not involved in betting, gaming, payments, or user acquisition activities.

Regulatory Context

• Surrogate branding: Parimatch allegedly continues operations in India under names like Parimatch Sports and Parimatch News, blurring lines between sports media and betting.
• Quick-commerce scrutiny: ED has also contacted other delivery platforms to check for similar associations.
• Legal framework: Under the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), promoting betting ads can trigger criminal liability.

Key Takeaways

Aspect	Details
ED’s focus	Offshore betting, money laundering, FX violations
Zepto’s role	Flyers/ad campaigns allegedly linked to Parimatch
Zepto’s stance	No direct involvement; third-party agency handled ads
Risk for Zepto	Reputational damage, compliance tightening, IPO overhang
Industry impact	Quick-commerce platforms may face stricter advertiser verification

Risks & Implications

• Reputational risk: Even without direct involvement, association with betting ads could hurt Zepto’s brand, especially ahead of IPO plans.
• Compliance tightening: Platforms may need stricter advertiser vetting, similar to broadcasters and publishers.
• Legal exposure: If ED finds liability, Zepto could face penalties under PROGA and FEMA.

Aspect	Details
ED press release	Issued May 27, 2026
Key finding	Betting ads promoted via quick‑commerce platforms
Zepto’s role	Flyers placed via third‑party agency
ED action	17 searches, ₹1.2 crore cash seized, ₹3.8 crore frozen
Legal risk	PROGA criminalises betting ad promotion

The Rise of Platform Fee Among Delivery Apps

Recently, quick-commerce startup firm Zepto introduced a platform fee, becoming the first in the sector to do so. Zepto now charges a platform fee of ₹2 per order, which applies to a select set of users. Additionally, Zepto collects a 'late night handling fee' of ₹15 on orders placed after 11 pm in certain cases.

The platform fee levied by delivery apps is a fixed amount that customers pay while placing an order, regardless of the order value. This fee is an operational charge paid to the delivery app operator for providing the convenience of ordering online.

Major food delivery apps in India like Swiggy and Zomato have already started charging a platform fee on every order, long ago. For instance, Zomato introduced a platform fee of ₹2 on specific orders in select markets. Similarly, Swiggy has increased its platform fee to boost unit economics, which is the revenue generated by a business from each unit of sale or order.

Platform fee is not limited to food delivery apps, India’s leading fashion e-commerce platform Myntra currently charges platform fee of ₹20 for each order placed on its app.

These fees are part of the companies' strategies to improve profitability and sustain their business models. However, the implementation of such fees can vary, and some companies may test higher fees in the future or adjust them based on demand.

Fee Charged by Delivery Apps in Other Countries

Since most of the apps-based startups in India are losely built on top of US-based business models, the concept of a platform fee is not unique either. This fee is also present among delivery apps in other countries. The fee is typically charged by the app to cover operational costs and contribute to the company's bottom line. The exact amount and implementation can vary by company and the country.

For example, in the United States, delivery apps like DoorDash and Uber Eats may charge a service fee, which is similar to a platform fee, and often a flat amount in the range of $2 to $5. The apps operators says that the fee helps cover a range of operational costs, including app maintenance, marketing, and payment processing. The service fee can be a percentage of the order total or a flat rate, and it's usually disclosed before the customer completes the order.

As per a US-based consumer reports some of the apps may charge more than a 15% commission to restaurants and more than a 5% fee per order for other charges.

In Europe, delivery platforms such as Deliveroo and Just Eat also charge fees that contribute to their revenue. These fees can include a delivery fee, service fee, or small order fee, depending on the order value and the specific terms set by the platform.

In Germany, delivery apps such as Lieferando and grocery delivery services like Flink and Rewe typically charge a delivery fee. For instance, Lieferando, which is a popular food delivery app, charges a delivery fee of approximately €1.80, depending on the order size. Similarly, Flink and Rewe, which are grocery delivery services, also have a delivery fee that is typically €1.80, although this can vary with the total amount of the order.

In Africa, delivery apps are experiencing a boom, with a variety of international and local platforms offering services across the continent, such as — Mr D Food, Jumla Food and Uber Eats. The fees associated with these services can vary. For instance, some platforms may charge a flat platform fee on every order, similar to convenience charges. Others might offer options like a "Pickup" feature where users can place an order online and collect it themselves from the restaurant without paying any delivery fees.

These fees are part of the business model to cover operational costs and to provide service to the customers. The exact fee structure and any additional service or platform fees can vary between different apps and may change over time. Customers are usually informed about these fees during the ordering process.

It is important to note that these fees are subject to change and can be influenced by market conditions, competition, and regulatory environments. Customers are generally informed about such fees during the ordering process, allowing them to make informed decisions about their purchases.

The Restaurants' Profit

The ethics of platform fees, delivery fees, or service fees charged by delivery apps is a topic of debate. On one hand, these fees are essential for the operation and sustainability of the delivery platforms, covering costs like app maintenance, marketing, and payment processing. On the other hand, there are concerns about the impact of these fees on restaurants and consumers.

Some argue that high fees can be predatory, especially if they take a significant cut from the restaurant's profits, potentially making it difficult for smaller establishments to survive. In some countries, there have been moves to cap these fees to protect local businesses. For example, Jersey City, which is the second-most populous city in the U.S, has limited delivery fees to 10% to support local restaurants.

The And

Ultimately, whether these fees are considered ethical may depend on their amount, transparency, and the value they provide to all stakeholders in the delivery process.

Moreover, the transparency of these fees is crucial. Customers and restaurants should be clearly informed about any fees and their purpose. Ethical practices would involve fair charges that do not disproportionately burden any party involved and contribute positively to the ecosystem of food delivery.