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Zomato and Swiggy Commissions: What Food Delivery Really Costs Your Restaurant

By Jigar Chanana, Founder, HospiMinds··8 min read
Food delivery rider with an insulated bag on a scooter
The short answer

Food aggregators in India typically take 18–30% commission on the order value, before you also absorb packaging, any discounts you fund, payment charges and GST. A ₹500 order at 25% commission nets ₹375 before packaging and tax — which is why a dish priced for dine-in often loses money on delivery. The fix is not to quit delivery but to price the delivery menu for the channel and know your true net per order.

How aggregator commission works

Zomato and Swiggy bring you demand you could never reach alone, and they charge for it — a commission of roughly 18–30% of the order value, depending on your city, category, and the visibility tier you have signed up for. That commission is deducted before you are paid, and it is only the first of several deductions between the menu price and your bank account.

What a delivery order really nets

The headline commission understates the true cost. On a ₹500 order, layer in:

  • Commission at, say, 25% = −₹125.
  • Packaging you provide, often ₹15–40 an order.
  • Discounts you fund — the "40% off" that the aggregator promotes but you frequently pay for.
  • Payment-gateway and other charges.
  • GST treatment on the transaction.

Stack those and the ₹500 order can net well under ₹350. Cost the food on top of that, and a dish that is comfortably profitable at the table can be a loss on delivery without anyone noticing until the month closes.

Price the delivery menu for the channel

The single biggest mistake is running one price list for dine-in and delivery. If delivery costs you 25–30% off the top, a delivery price needs to carry that — many restaurants run a modestly higher delivery menu price, which platforms allow, to protect margin. Cost the dish, subtract the true channel cost, and confirm there is still profit left. Our menu pricing guide is the base; delivery just adds a channel-cost layer on top before you set the price.

The long game: your own ordering channel

Every delivery order you take directly — through your own site, WhatsApp, or an ONDC-based channel — keeps the 18–30% the aggregator would have taken. Aggregators are unbeatable for discovery, but the repeat customer who already loves your food does not need to be re-acquired through them. Nudging loyal customers to order direct, while keeping aggregators for reach, is the same play as a hotel steering repeat guests off OTAs — use the platform for discovery, win the repeat yourself.

Do it now, free

Delivery Aggregator Commission Calculator

See what actually reaches your account per delivery order after aggregator commission, GST on commission, packaging, discounts and payment fees.

Open the calculator

Step by step

Work out the true net on a delivery order.

  1. Start with the order value. Take the menu price the customer pays on the app.
  2. Subtract commission. Apply the aggregator’s commission percentage (commonly 18–30%).
  3. Subtract the other costs. Deduct packaging, any discount you fund, payment charges, and account for GST.
  4. Check the food cost against the net. Confirm the dish’s food cost still leaves a profit against the true net — and set a delivery price that protects margin.

Frequently asked questions

How much commission do Zomato and Swiggy charge?

Aggregators in India typically charge 18–30% of the order value, depending on city, category and the visibility tier you have chosen. The commission is deducted before you are paid, on top of which you usually absorb packaging, funded discounts, payment charges and GST.

Why does a dish lose money on delivery but not dine-in?

Because delivery carries channel costs dine-in does not — commission of 18–30%, packaging, funded discounts and payment charges. A dish priced for the table can net a loss once those come off the top, which is why delivery needs its own pricing.

Should I charge more on delivery than dine-in?

Often yes. Because delivery costs you 25–30% off the top, many restaurants run a modestly higher delivery menu price to protect margin, which the platforms allow. Cost the dish, subtract the true channel cost, and confirm a profit remains.

Jigar Chanana · Founder, HospiMinds

BBA Hospitality (NMIMS). Grew up around the trade and built two hospitality platforms — Hospiverse and Hospiwork. Writes the numbers side of running restaurants, cafés and hotels in India.

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