India's Eating-Out Economy
Delivery App Commissions and Restaurants
How Swiggy and Zomato charge restaurants commissions, why restaurants complain, the competition investigation, and how restaurants respond.
Food delivery apps changed restaurants’ businesses, but at a price.
Commissions
Zomato and Swiggy typically charge restaurants commissions of around 15 to 30 percent of order value, plus fees for promotions and payment processing.
Why restaurants use them
- Access to millions of customers.
- Delivery fleets.
- Visibility and marketing.
Complaints
The National Restaurant Association of India complained of:
- High commissions.
- Deep discounting pressure.
- Data restrictions: platforms keep customer data.
- Private labels: platforms promoting their own food brands.
Competition investigation
The Competition Commission of India investigated Zomato and Swiggy, and reports in 2024 indicated findings of anti-competitive practices, including exclusivity arrangements.
Restaurant responses
- Menu prices higher on apps than in-store.
- Direct ordering through their own apps or WhatsApp.
- ONDC, the government-backed open network, as an alternative with lower commissions.
Duopoly
With two dominant platforms, restaurants have limited bargaining power.
A biryani costs 300 rupees in the restaurant but 360 on a delivery app, as the restaurant offsets the platform's commission.
Commissions of 15 to 30 percent are common.
- Delivery apps charge commissions of around 15 to 30 percent.
- Restaurants complain about commissions, discounts and data.
- The CCI investigated Zomato and Swiggy.
- ONDC and direct ordering offer alternatives.
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