Zepto’s CEO Admits “Dark Pattern” Mistake, A Rare Moment of Honesty in India’s Startup World

zepto

India’s quick-commerce space moves fast. But this week, something unusual happened, something that made both customers and startup founders stop scrolling for a second.

Zepto’s CEO, Aadit Palicha, openly admitted that the company made a mistake. Not a small one, but something that directly affected millions of users: the use of dark patterns in pricing and checkout design. And in a refreshing move, he confirmed that the company has removed every such practice after receiving strong customer feedback.

For a market where most founders defend every decision until the end, this level of honesty stood out. And it has now sparked a wider conversation about transparency, user experience, and ethical growth in India’s booming startup ecosystem.

What Exactly Happened?

Over the last few weeks, customers started posting screenshots and complaints online. They pointed out that Zepto was adding extra charges during checkout, sometimes labelled as “handling fees”, “small order fees”, or “processing charges”. Many users also claimed that prices were not consistent and that some app screens were confusing.

These tactics are commonly called dark patterns, design choices that push users into paying more or choosing options they may not fully understand.

Instead of denying the problem, Zepto’s CEO accepted it upfront. He said:

  • “It was a mistake.”
  • “We rolled it back.”
  • “It won’t happen again.”

According to him, the decision to reverse these features was not because of regulations or media pressure. It was simply because users were unhappy, and the company believed those concerns were valid.

Why This Matters for the Startup Ecosystem?

Most Indian startups face massive pressure to grow fast, boost revenue and show strong unit economics. In that race, some experiments cross the line. Zepto’s situation is a reminder that:

1. You can’t build a large consumer brand without trust

Today’s customers are quick, smart and vocal. Hidden fees or complicated pricing may offer a short-term revenue bump, but they break long-term credibility. Zepto’s quick reversal shows the company understood this.

2. User experience is not just design; it includes pricing transparency

Startups often spend months refining the UI. But if a user reaches checkout and sees a surprise fee, the entire experience feels broken. Ethical UX, clear charges and “what you see is what you pay” matter more than fancy colours and animations.

3. Feedback loops are powerful

Zepto acted within weeks. This shows the importance of watching social media conversations, reviewing real user complaints, and reacting fast. In today’s market, listening is a competitive advantage.

4. Mistakes can become a strength if handled well

Most companies hide errors. Zepto did the opposite. And surprisingly, many customers online appreciated the honesty.

What Are Dark Patterns and Why Should Startups Avoid Them?

Dark patterns are user-interface tricks that guide people into actions they wouldn’t consciously choose — like paying hidden fees, subscribing accidentally, or missing a cancellation button.

For startups, they may solve short-term revenue issues, but eventually create bigger problems like:

  • Loss of customer trust
  • Negative social media sentiment
  • Lower retention
  • Regulatory scrutiny

A Lesson for Founders: Growth Should Not Come at the Cost of Ethics

Zepto is one of India’s fastest-growing startups. It competes with giants like Blinkit and Swiggy Instamart. The pressure is real. But this incident shows that good growth is better than fast growth.

For young founders, product leaders and operators, here are simple but timeless lessons:

  • Be transparent from day one
  • Make pricing honest and simple
  • Talk to your users, not at them
  • Fix issues publicly instead of quietly
  • Remember: ethics is a business strategy, not a PR stunt

A Small Mistake, a Big Moment for India’s Tech Scene

Zepto’s admission may look like a small corporate correction, but it’s actually a big moment for the Indian startup world. It sets a new expectation: Be honest. Be transparent. Fix things faster than you break them.

As India’s digital economy scales, such decisions will shape the future of how companies build trust. Zepto’s move doesn’t just repair its relationship with customers; it raises the bar for the entire ecosystem.

If startups want loyal users, ethical design and clean user experience must become a habit, not an afterthought.

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