Delivery Wars in India Heat Up as Restaurateurs Push Back

Delivery Wars in India Heat Up as Restaurateurs Push Back

Delivery Wars in India Heat Up as Restaurateurs Push Back

While "delivery wars" continue to rage in the U.S. restaurant sector, with franchisees caught between keeping up with competitors and paying 20 to 30 percent commissions to third parties, delivery wars are also heating up worldwide.

A recent article in the New York Times, India's Restaurants Rebel Against Food Delivery Apps, zeroes in on what's happening with delivery in India. The article begins: "Frustrated by the steep commissions and discounts that apps like Zomato and Uber Eats push on restaurants, thousands have started a movement to #Logout from them."

Citing the experience of Aakanksha Porwal, who owns a small diner in India and signed up with Zomato - a restaurant aggregator and delivery service founded in India in 2008 that operates in two dozen countries - the article says that her goal was to expand her business. However, the article continued: "But three months and 150 free dishes later, Ms. Porwal has grown disillusioned.

The free food has cost her about 20 percent of her revenue, on top of a Zomato Gold sign-up fee of about $550, she said. Gold users, who pay about $14 for a year of buy-one-get-one-free dining at 6,000 restaurants, are often rude and demand extra discounts, she added. And Vahnilla [her diner] pays Zomato a steep commission of 28 percent on every order that is delivered.

'Zomato is the greatest thing to happen to a customer,' Ms. Porwal said. 'The consideration for restaurant owners is literally nothing.'

Now, in a collective primal scream, India's restaurants are rebelling against Zomato and other leading dining apps."

For more on the restaurant delivery situation in India, including comments from other frustrated restaurateurs and the response from Zomato's CEO, read the full article here.

Published: September 12th, 2019

Share this Feature

Hot Dish Advertising
SPONSORED CONTENT
Hot Dish Advertising
SPONSORED CONTENT
Hot Dish Advertising
SPONSORED CONTENT

Recommended Reading:

Broken Yolk
ADVERTISE SPONSORED CONTENT

STAY CONNECTED

The International Franchise Report keeps you up to date on franchising news and trends from across the world.


FRANCHISE TOPICS

The Human Bean
ADVERTISE SPONSORED CONTENT
Multi-Unit Franchising Conference
Conferences
Caesar's Forum, Las Vegas
MAR 24-27TH, 2026

Featured Opportunities

FASTSIGNS
Signage has never been more important. Right now, businesses are looking for new and better ways to compete.
The Goddard School
Expand your portfolio with a trusted leader in early childhood education. Enter the thriving $71B childcare industry with a premium brand, proven...
Aussie Pet Mobile
Aussie Pet Mobile delivers professional, one-on-one grooming services for dogs and cats in fully customized vans, providing time-saving convenience...
Captain D's Seafood
The #1 Seafood Fast Casual Franchise is seeking Multi-Unit Franchisees to open in markets across the US.
Huckleberry's Breakfast & Lunch
Own a franchise that takes you to the “Bayou” every morning and gets you home for dinner every night! Operating Hours 7 AM – 3 PM!

Share This Page

Subscribe to our Newsletters