Zomato to stop charging commission from restaurants, take on Swiggy

This comes in a bid to strengthen the restaurant discovery platform’s hold in the food-tech space and take on Swiggy.
  • Franchise India Buereau
Restaurant India

Online restaurant discovery and food ordering platform Zomato has announced that it will stop charging commission from restaurants that bring in high orders.

This comes in a bid to strengthen the restaurant discovery platform’s hold in the food-tech space and take on Swiggy which has done a great job in delivery and food-tech space.

To be eligible for this, restaurants need to meet certain criteria listed out by the company. "Some of these criteria include the number of orders you process with us on a weekly basis, and whether your customers are happy with your food and service," shares Deepinder Goyal, CEO Zomato in a blog post.

The programme is likely to cover 70% of Zomato's 25,000-restaurant partner network in the country. Zomato currently charges 7% as commission fees from restaurants under its food ordering business, which does not include delivery and payment gateway charges.

The move to end commission charges comes after Zomato said it has turned profitable across all 24 countries where it has presence. Over the past 18-24 months, Zomato has been on a rationalising spree, having capped its annual operating cash burn by over 80% to Rs 77 crore.

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