Zomato May Cut Commissions and Change Delivery Fee

Zomato’s parent company, Eternal Ltd., is talking with restaurant partners about cutting commission rates and changing long-distance delivery fees. These talks are still in early stages and no final decision has been made yet.

Right now, Zomato charges 10%–28% commissions on orders, plus payment fees and GST. Many small restaurants say these charges are too high, especially when big brands get lower rates. By cutting commissions, Zomato hopes to make restaurants happier and keep them loyal to the platform.

Changing the delivery fee model is also important. Many partners say extra charges for long-distance orders stop customers from buying, which hurts everyone. If Zomato makes delivery cheaper, it could increase orders and boost sales for both restaurants and itself.

This comes at a time when Rapido, known for its cheap bike rides, has entered the food delivery market. Rapido is offering lower commissions and flat delivery fees, putting pressure on Zomato and Swiggy to change their pricing. If Zomato acts first, Swiggy may also have to follow.

For restaurants, lower commissions mean better profits and may even push them to work exclusively with Zomato. But for Zomato, cutting commissions could reduce its own earnings unless it gets more orders or lowers costs in other ways.

This move shows Zomato is serious about keeping restaurants happy and staying ahead of competitors. As more growth comes from smaller cities, where price sensitivity is high, such changes could help Zomato grow faster.