Food delivery giant Zomato’s parent Eternal is said to be considering tweaks to its commission structure and has reportedly begun discussions with restaurants across the country. According to an NDTV Profit report, the company is gathering feedback from its partners but has not finalized any new plan. However, several restaurant owners in Bengaluru and Delhi told Inc42 they had not received any such communication. Zomato too denied the claims, calling them “not true.”
Rapido’s New Play With ‘Ownly’
The speculation comes at a time when ride-hailing player Rapido has entered the food delivery space with its new service, “Ownly.” Unlike traditional aggregators, Rapido’s app charges restaurants a flat fee of ₹25 per order plus GST, instead of the standard 25–35% commission levied by incumbents like Zomato and Swiggy. The company positions itself as a pure intermediary, giving restaurants more flexibility in managing deliveries either directly or via third-party partners.
Pressure Mounts on Incumbents
For restaurants, Rapido’s low-cost model could mean significant savings, especially when compared to Zomato and Swiggy’s existing charges that often include additional fees such as rain collection and long-distance delivery surcharges. This pricing strategy, inspired by Rapido’s earlier ride-hailing playbook, is expected to intensify competition in India’s already crowded foodtech market. If scaled successfully, Ownly could pressure incumbents to revisit their revenue models to retain restaurant loyalty.
A Crowded Battlefield
Rapido is not the first player to challenge Zomato and Swiggy. Ola experimented with Ola Cafe in 2015 and later acquired Foodpanda India in 2017, both of which eventually shut down. Uber launched Uber Eats in 2017 but sold the business to Zomato in 2020. More recently, Paytm and magicpin have partnered with ONDC to offer food ordering services. Despite past failures, the sector continues to attract new entrants, underlining its long-term growth potential.
What Lies Ahead
For now, Zomato maintains it is only holding discussions and has not rolled out any commission changes. But with Rapido’s disruptive flat-fee model gaining traction, the pressure to innovate is clear. Whether Zomato and Swiggy adapt their commission structures or double down on existing practices could determine how India’s food delivery market evolves in the coming years.
