Zomato has firmly denied any intention to move to a zero-commission model for restaurant partners, amid growing speculation fueled by emerging competitors offering much lower fees. CEO Deepinder Goyal emphasized the necessity of maintaining commission structures, stating, “We are not profitable. We need to make some more money from somewhere. So, absolutely not taking rates down.”
This clarification comes as a direct response to competitive pressures from newcomers like Rapido, which has entered the food delivery space with a compelling commission proposition—offering restaurants tie-ups at up to 50% lower commission rates than incumbent platforms
Why It Matters
| Factor | Insight |
|---|---|
| Financial Sustainability | Zomato reinforces that commissions are vital for its profitability and business model. |
| Competitive Landscape | With Rapido and others cutting prices drastically, Zomato’s stance highlights its emphasis on long-term viability over short-term price wars. |
| Clarity for Restaurant Partners | This reassurance helps restaurants understand that current commission structures remain intact amidst market talk of “zero commission” shifts. |
