Insights

Swiggy and Zomato commission, explained for restaurant owners

The headline rate is the number everyone quotes and the least useful one. Here's how the money really moves.

On Zomato the commission (the service fee) is a flat percentage, but it is not charged on your menu price. It is charged on the commissionable value: your item total, plus packaging, minus your own restaurant-funded discounts, and before the GST the customer pays. Platform-funded discounts do not reduce it. So the fee as a share of your menu subtotal lands a little under the headline rate when you run promotions, and a little over when you have heavy packaging and no discounts.

The base matters more than the rate

Commission is charged on the commissionable value, not your menu price: item total, plus packaging, minus your restaurant-funded discounts, before customer GST. Promotions you fund reduce the base; packaging adds to it. This is verified against real settlement statements, not a rule of thumb.

The service fee is a clean, consistent percentage

Applied to that base, the fee runs as a flat rate order by order. This is the line most owners mean when they say commission, and on its own it is predictable. Exact rates vary by contract and city, so read your own statement rather than trusting a number you heard.

Commission is only the first line

On top of it come 18% GST on the fee, a payment-mechanism charge, and tax collected and deducted at source. Some of that is not a true cost: the GST on commission is a recoverable credit, and a share of the tax is simply collected from the customer and passed through. Read raw, the deductions look larger than they are.

Take-home is the only number that matters

Add commission, fees, ads, and discounts together and see what reaches your bank as a share of gross order value. Where that dips, the cause is almost always ad load or discounting, not the commission rate. Below the mid-fifties, the channel is subsidising volume you would be better off without.

This is the kind of work we run end to end for restaurants in Mumbai. See how our Aggregator Growth engagement works.

FAQ

Frequently asked questions

It is charged on the commissionable value, which is your item total plus packaging minus your own restaurant-funded discounts, before customer GST. Discounts you fund reduce the base; platform-funded discounts do not.

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