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Zero Commission Models: Disruptive or Just a Pricing Play?
Startups like Meesho, Rapido, and Namma Yatri have disrupted their industries with zero commission models, by removing sales-based commissions while keeping costs low for customers.
But the big question remains: Are these models really unique, or are they a different way of arriving at the same business economics?
In this bonus episode of Interstellar, Rahul & Ritesh break down how Zero Commission Models work, where they thrive, and the untapped opportunities for emerging founders.
Reach Rahul Chowdhri:
X: https://x.com/rchowdhri
LinkedIn: https://www.linkedin.com/in/rahulchowdhri/
Reach Ritesh Banglani:
X: https://x.com/banglani
LinkedIn: https://www.linkedin.com/in/riteshbanglani/
Find us on
YouTube - youtu.be/CmkCZvXI65c
Apple podcasts - apple.co/41HGKvU
Visit our website at www.stellarisvp.com
In this episode of Interstellar, we cover:
00:00 Trailer
00:57 What are zero commission models?
03:10 How do companies that adopt a zero commission model make money?
04:22 Does ‘zero commission’ mean zero fees?
06:24 What kind of scale is necessary to sustain a zero commission model?
07:30 Does unbundling of operations create a more scalable business?
10:18 Does this translate to unbundling-led price discrimination?
13:23 On the incentive alignment between the supplier and platform
16:01 Is there danger of concentrating demand in the hands of suppliers with the deepest pockets?
19:11 Who handles customer experience in zero commission models if so many services are unbundled?
25:05 In cases where customers can tell a good supplier from a bad one, can zero commission models work?
