Zomato Mulls Restructuring Commission Models Amid Rapido's Food Delivery Push

India's largest food aggregator Eternal Ltd. is said to be mulling a relaxation in its commission models that will likely come as a relief for its restaurant partners, two people aware of the matter told NDTV Profit.

Deepinder Goyal's firm, which is the parent organisation of food delivery major Zomato, is in active discussions with stakeholders about easing of commission percentages and long-distance fees, one of the abovementioned persons said on the condition of anonymity.

Zomato is engaging in conversation with restaurants operating across country, but nothing has been finalised yet, another person added.

To add some context, commissions for restaurants on Zomato ranges from 10% to up to 28%. On top of this, there are also payment gateway charges and goods and services tax that the restaurant has to pay to the platform. Average order value and number of orders also matter for the commission. But that's not all. A restaurant's brand identity can also affect commissions.

Generally, larger chains or legendary brands that platforms like Swiggy and Zomato want on their platforms, also end up paying much lower commissions than smaller restaurants, industry insiders told NDTV Profit.

Zomato, a few months ago, had also introduced a long-distance delivery fee for restaurant partners while piloting a visibility plan that gave delivery riders on priority to paying partners.

Zomato's move comes at a time when the Nifty50 firm and Swiggy Ltd. have a comfortable duopoly in the market. Restaurants, however, have been raising concerns over commission models and margins, which is what Rapido's strategy seems to be focusing on.

NDTV Profit has reached out to Zomato for comments on the story.