High commission fees of Zomato and Swiggy has created a buzz in the Indian market. The food delivery industry in India has been dominated by two major players, Zomato and Swiggy, for quite some time now. These platforms have revolutionized the way we order food, providing convenience and a wide range of options to choose from. However, the high commission fees charged by these platforms have been a point of contention for many restaurant owners and food aggregators.
The Rise of ONDC
Enter ONDC (Open Network for Digital Commerce), a government-backed initiative that aims to democratize the e-commerce landscape in India. ONDC allows restaurants to sell food directly to consumers without the need for a third-party platform like Zomato or Swiggy. This not only reduces the commission fees that restaurants have to pay but also gives them more control over their business.
The Support from Food Aggregators
Recently, food aggregators like Social Farzi Cafe have voiced their support for ONDC, citing the high commission fees charged by Zomato and Swiggy as a significant burden on their business. According to reports, these platforms can take up to 55% of the order value as commission, leaving the restaurant with a meager profit margin.
The Price Comparison Between ONDC, Swiggy & Zomato
A price comparison conducted by Mint showed that ONDC is indeed cheaper than Zomato and Swiggy. For example, the price of a ‘Big Tandoori Paneer Burger’ was ₹359 on both Zomato and Swiggy, while it was only ₹270 on ONDC. This significant price difference is sure to attract more restaurants and consumers to the ONDC platform.
How Does ONDC Work?
ONDC works similarly to UPI, meaning it can be integrated into existing apps like Paytm, PhonePe, and Meesho. Currently, ONDC has more than 29,000 sellers offering over 36 lakh products. Consumers can access ONDC through the Paytm app, where they can order food from restaurants that have partnered with ONDC.
Note: We have thoroughly explained the concept of ONDC in the article “What Is ONDC? An Explainer On The New Tech Revolution of India.” Check it out for detailed information.
Conclusion (High Commission Fees of Zomato and Swiggy)
The entry of ONDC into the food delivery market is a game-changer that has the potential to disrupt the dominance of Zomato and Swiggy. With its lower commission fees and direct-to-consumer model, ONDC is poised to attract more restaurants and consumers to its platform. The support from food aggregators like Social Farzi Cafe is a testament to the positive impact that ONDC can have on the industry.