Indian Food Times reported Zomato's commission rising from 27% to 33%, and YourStory described restaurant partners saying they were pressured to accept higher rates. Inc42 and The Quint trace how Zomato Gold's deep discounts squeezed restaurant margins, and The Tribune reported on a Competition Commission of India probe that found practices by Zomato and Swiggy hurting fair competition.
How Zomato's commission has moved
Indian Food Times reported that Zomato raised its commission rate from 27% to 33%, and built its headline around the obvious question of why. YourStory's reporting on the lead-up to changes of this kind records restaurant partners complaining that Zomato pushed them to accept higher commission, with the threat of a smaller delivery radius or less visibility on the app if they refused.
Inc42 looked into recurring rumours that Zomato might switch to a zero-commission model and found no evidence for them; commission income is still too central to how the platform makes money for it to give up. The latest sign of movement is from Verdict Food Service. It reported that Zomato's parent, Eternal, was weighing possible changes both to commission and to fees on long-distance deliveries, following pressure from bodies representing restaurants. Nothing had been finalised when that report came out.
What Zomato Gold's discounts cost restaurants
Zomato Gold's dining discounts have been among the most disputed features the platform has run. Looking back at the programme, Inc42 argues that heavy discounting trained customers to expect deep bargains, which ate into the margins of the very restaurants paying for those discounts.
The Quint's explainer on the backlash sets out why restaurants left the 1+1 dining offers under Gold, where a guest buys one item and gets a second free. They gave two reasons:
- the financial strain of funding steep discounts out of their own margins;
- losing control over the prices they charge for their own food and drinks.
What the Competition Commission of India found
The dispute did not stay between restaurants and a single platform. The Tribune reported that a probe by the Competition Commission of India found Zomato and Swiggy engaging in practices that harmed fair competition and affected their restaurant partners. That moves the complaint from restaurants being unhappy to a regulator agreeing that something is wrong.
What this means for your restaurant
- Go into any commission discussion knowing the history: a reported rise from 27% to 33%, and partner accounts of pressure applied through delivery radius and visibility.
- Before joining a platform-run discount or loyalty programme, work out who pays for the discount and how much control over your own prices you give up; those were the two issues at the heart of the Gold dispute.
- Watch Eternal's review of commission and long-distance delivery fees. Verdict Food Service reports it followed pressure from restaurant bodies, though nothing had been decided at the time.
None of this is a reason to walk away from Zomato; for most restaurants it is not optional. The aim is to go into any negotiation understanding how commission has moved over time and what the platform is trying to achieve, rather than only reacting to each change.
Sources
- Eternal explores changes to Zomato's commission structure for restaurants — Verdict Food Service
- After commission talks, Zomato restaurant partners complain, reduce service radius — YourStory
- Will Zomato Move To Zero Commission Model For Restaurants? — Inc42
- Zomato's Commission Rate Hiked From 27% to 33% : Question is Why? — Indian Food Times
- Competition commission probe finds Zomato, Swiggy violating competition norms — The Tribune
- The Dark Side Of Discounts: Lessons From Zomato Gold For India's Food Startups — Inc42
- Why are restaurants logging out of Zomato’s loyalty program offering 1+1 on food and drinks? — The Quint
This article summarises the reporting and guides listed above; the figures belong to those sources and are attributed in the text. Check anything that affects your business against your own platform agreements, payout statements and advisers.