A Zomato spokesperson said, “We keep reconsidering our commissions to make sure they are competitive and sustainable for restaurant partners as well as Zomato.” Incidentally, the food delivery giant had said it had no plans to increase the restaurant commission in July 2022, after Inc42 had reported that popular pizza chain Domino’s India might delist if the food tech increases commission.
Zomato has reportedly asked several restaurant chains to increase its commission by 2-6% amid widening losses, pressures on profitability, and a drop in food delivery numbers. Zomato has been charging a commission between 18-25% per order for deliveries, depending on their arrangement with restaurant partners, for the past two years.
According to a restaurant industry executive, Zomato wants to be at par with other aggregators like Swiggy, who often charge higher commissions. Karan Tanna, Founder and CEO of food tech company Ghost Kitchens, expressed concerns about the impact of Zomato’s focus on unit-level profitability on restaurant unit economics.
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