India’s food delivery landscape is undergoing its biggest shift in years. With rising commissions from Zomato and Swiggy, local restaurants have been struggling with thin margins. But now, ONDC (Open Network for Digital Commerce) is giving small businesses a powerful, low‑cost alternative—allowing restaurants to save up to 20% on commissions.
This guide explains how ONDC compares with Zomato/Swiggy, why restaurants are switching, and what the future looks like for food delivery in India.
TL;DR
- Zomato/Swiggy charge 18%–30% commission + delivery fee
- ONDC charges 2%–8%, depending on the buyer app
- Restaurants keep more profit while customers get lower prices
- ONDC is an open network, not a marketplace
- Adoption is rising fast, especially in Tier 2 & Tier 3 cities
What is ONDC?
ONDC is a government-backed open network that connects buyers and sellers through multiple apps. Unlike Zomato/Swiggy, ONDC does not own customers — it only facilitates transactions.
Examples of ONDC buyer apps:
- Paytm
- MagicPin
- Pincode (PhonePe)
- Meesho
- Craftsvilla
- Spice Money
Restaurants list once → appear on ALL apps.
ONDC vs Zomato/Swiggy: Commission Comparison
Zomato & Swiggy:
- Restaurant commission: 18%–30%
- Delivery commission: 10%–20%
- High advertising costs
- Additional onboarding + packaging guidelines
Total cost to restaurant: 30%–45%
ONDC:
- Network fee: 2%–8%
- Lower delivery charges
- Transparent pricing
- No exclusive listings or forced discounts
Total cost to restaurant: 8%–12%
This is where restaurants save 20% or more per order.
Why Restaurants Are Saving Big on ONDC
1. No High Commission Fees
ONDC’s open protocol prevents monopoly pricing.
2. Delivery Charges Are Lower
Multiple logistics partners = competitive delivery fees.
3. No Forced Discounts
Zomato/Swiggy often push “Buy 1 Get 1” or 60% off deals (paid by restaurants).
ONDC lets restaurants set their own pricing without pressure.
4. Direct Customer Ownership
Restaurants receive:
- Customer name
- Phone number
- Order history
This is impossible on Zomato/Swiggy.
5. Cheaper for Customers Too
Because restaurants save money, they list food at:
- Lower prices
- Reduced delivery charges
ONDC bills often show up to ₹150–₹200 lower than Zomato/Swiggy.
Why Some Restaurants Still Prefer Zomato/Swiggy
Despite higher costs, the large apps offer:
- Huge built‑in customer base
- Strong discovery + marketing
- Faster delivery and logistics
- Consistent customer experience
Zomato/Swiggy = high-volume orders, lower margins
ONDC = lower-volume orders, higher margins
Most restaurants now run both.
Customer Experience: ONDC vs Zomato/Swiggy
Zomato/Swiggy Pros
- Faster delivery
- Dedicated customer support
- Highly optimized app
- Live tracking
ONDC Pros
- Cheaper orders
- Transparent fees
- Support for local businesses
Current ONDC Challenges
- Delivery delays in some cities
- Patchy UI depending on app
- Customer refunds/support vary by platform
ONDC is improving rapidly but not fully polished yet.
Real Savings Example
A restaurant sells a ₹400 dish.
On Zomato:
- 25% commission = ₹100
- Delivery charges: restaurant pays part
- Packaging + platform fees
Restaurant keeps: ~₹250
On ONDC:
- 6% network fee = ₹24
- Lower delivery fees
Restaurant keeps: ~₹340–₹360
Total savings: ₹90–₹110 per order (~25% more margin)
Should Restaurants Switch to ONDC?
YES — but don’t rely on it alone.
Best strategy:
- Use ONDC for high-margin profitable orders
- Use Zomato/Swiggy for large order volume
- Encourage repeat ONDC orders using QR codes + flyers
Example:
“Order from us on ONDC and save ₹80!”
This is now common in Tier‑1 and Tier‑2 cities.
Future of Food Delivery in India
Experts predict:
- ONDC to reach 250 million+ users by 2027
- More logistics partners lowering delivery costs
- Better app experience
- Restaurants becoming less dependent on Zomato/Swiggy
- Lower commissions industry-wide due to competition
The monopoly era is ending.
Final Thoughts
ONDC is reshaping how restaurants do business in India. With lower commissions, transparent pricing, and the ability to own customer relationships, it’s becoming a lifeline for local businesses.
Zomato and Swiggy remain important — but ONDC finally gives restaurants choice.
If you’re a restaurant owner, switching some of your orders to ONDC could improve your profits significantly in 2026 and beyond.
