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?