As emerging food delivery models like Swiggy's "Toing" and the government-backed Open Network for Digital Commerce (ONDC) try to gain traction with lower commission structures, restaurants are increasingly adopting differential pricing across platforms.
However, this trend appears to be creating friction with market leader Zomato.
According to conversations with over eight restaurant partners, Zomato's relationship managers (RMs) have recently reached out to them regarding pricing discrepancies across platforms. Multiple restaurant owners told Entrackr that they were informally advised to maintain price parity on Zomato, compared to other platforms.
Some also indicated that non-compliance could potentially impact their presence or performance on the platform, although no written communication or formal directive was shared.
The development comes amid the rise of alternative ordering channels such as ONDC and Swiggy's Toing, which are offering lower commissions compared to other food delivery platforms. This has enabled restaurants to pass on part of the savings to consumers in the form of lower menu prices, while also tapping into incremental demand from newer platforms.
"For us, it comes down to simple unit economics. Lower commissions allow us to offer better prices on other platforms without hurting margins," said a restaurant owner, requesting anonymity. "However, we've started receiving calls from Zomato's relationship managers questioning these pricing differences."
At present, order volumes from these emerging platforms remain relatively small, contributing just 1-2% of overall food delivery demand for most restaurants. However, industry stakeholders believe this could change if consumer adoption increases, potentially intensifying competition and platform-level scrutiny.
In response to a detailed questionnaire sent by Entrackr, Zomato denied any involvement in influencing pricing decisions.
An Eternal spokesperson said, "Zomato does not decide or influence menu items, prices or descriptions as these are determined solely by restaurants and Zomato has no role to play in this. We are aware that certain restaurants tend to keep differential pricing across different channels; however, this decision is taken by individual restaurants/brands as per their business goals. Additionally, we believe customers value consistency across platforms and partners who are able to deliver that often benefit from stronger trust and repeat demand."
The company's statement emphasizes its official stance of non-interference. However, the outreach by relationship managers to restaurant partners presents a contrasting on-ground narrative.
The situation also highlights a broader tension in the evolving food delivery ecosystem. While platforms like Zomato may prefer pricing consistency to maintain customer trust and platform integrity, restaurants are increasingly seeking flexibility to optimize margins and experiment with newer, low-commission channels.
Given Zomato's dominant position in the market, any perceived pressure on pricing parity could have implications for competition, especially for emerging platforms trying to gain traction through cost advantages. At the same time, from a business standpoint, encouraging uniform pricing may also be seen as a way to ensure a consistent consumer experience. The pulls and pressures come at a time when many users have been put off by differences as high as 25% between menu prices at the restaurant and on platforms, including Zomato. Owners have blamed it on the commission plus advertising structure imposed on them, with many regularly sharing the maths of making no money on many such orders. Platforms applying 'promotions' on many orders has been a particularly huge bone of contention, with communication an essential aspect that has failed for many, and has already forced the stripping down of initiatives like Zomato Gold. Add to that the 'dark' or 'cloud kitchens that populate platforms, and there is a clearly long and potentially fraught route ahead for both customers and platforms when it comes to quality related trust issues.
As competition deepens and alternative models scale, the question of pricing freedom versus platform influence is likely to remain a key flashpoint in India's food delivery landscape.

