Eternal considers revising Zomato’s commission structure to benefit restaurant partners

INDIA – Eternal, the Indian parent company of the popular online food delivery platform Zomato, has reportedly been weighing changes to its commission framework that could ease financial pressures on restaurant partners.

Media outlets indicate that the company is actively engaging with various stakeholders on potential reductions in commission rates and long-distance delivery fees. However, no binding agreements have been finalised as discussions continue.

Zomato’s current commission model requires restaurants to pay fees ranging from 10% to 28%, depending on various factors including order volumes and promotional arrangements.

Alongside these commissions, restaurant partners also face other charges such as payment gateway fees, as well as the applicable goods and services tax (GST), contributing to overall operational costs.

The company’s contemplation of revising these charges comes amid ongoing industry pressures and demands from restaurant owners, who have frequently cited commission fees as a key challenge to their profitability.

High fees can affect smaller and mid-sized establishments disproportionately, making cost adjustments an important topic of discussion in the sector.

In addition to commission adjustments, Zomato is exploring possibilities for modifying long-distance delivery fees.

These fees are applied when orders are delivered outside preferred zones, which tend to incur higher logistical costs. Easing these fees could enhance affordability for restaurants seeking to broaden their delivery radius.

Eternal’s internal reviews reflect a broader trend in the food delivery industry, where companies are balancing profitability with maintaining a supportive ecosystem for restaurant partners.

Competitive market forces and the emergence of alternative delivery platforms have influenced companies to reconsider fee structures strategically.

While no formal announcements have been made, industry experts suggest that any reductions in commission or delivery fees could be phased in gradually, allowing Zomato to manage financial implications while improving partner satisfaction.

These potential changes would align with Zomato’s goal of fostering long-term partnerships with restaurants and improving the overall value proposition for all stakeholders in the food delivery chain.

As conversations evolve, restaurant owners and delivery customers alike are closely monitoring developments for signs of more favourable pricing models that could benefit the entire ecosystem.

The final structure and extent of fee adjustments will likely depend on impact assessments, regulatory considerations, and competitive dynamics shaping the Indian food delivery market.

Eternal’s prospective moves to revisit commission rates underline the complex balancing act online platforms face to support growth while ensuring equitable terms for restaurant collaborators.

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