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03 September 2025

Daily Newsletter

03 September 2025

Eternal explores changes to Zomato’s commission structure for restaurants

Zomato is in discussions with stakeholders over lowering commission rates.

Umesh Ellichipuram September 01 2025

Eternal, the Indian parent company of online food delivery platform Zomato, is contemplating adjustments to its commission structures, which may provide relief to its restaurant partners, as reported by NDTV Profit.

Zomato is in discussions with stakeholders about potentially lowering commission rates and long-distance delivery fees. No agreements have yet been reached.

Restaurant commissions on Zomato vary between 10% and 28%, alongside additional costs such as payment gateway fees and goods and services tax.

The commission structure is influenced by factors including the average order value, the number of orders and the restaurant's brand status, so that larger chains often benefit from lower commission rates compared to smaller establishments.

In early 2025, Zomato implemented a long-distance delivery fee for its restaurant partners and launched a visibility initiative that favours paying partners in terms of delivery rider prioritisation.

But many restaurants have raised concerns about the current commission models and their effect on profit margins - an area of focus for competitors such as Rapido.

NDTV Profit has sought comments from Zomato regarding this development.

In April 2025, Zomato laid off close to 600 customer support associates within a year of their hiring.

This decision was attributed to the company's slowing growth in the food delivery sector, losses incurred by its quick commerce unit, Blinkit, and the integration of AI to automate customer support functions.

The layoffs occurred around the same time as the launch of Nugget, Zomato's in-house AI-powered customer support platform.

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