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Amanat Prakash

Building xces • 3m

What is Menu to Platform Price Difference? It refers to the gap between the actual in-restaurant menu price of an item and the price listed on a food delivery platform like Swiggy, Zomato, etc. Why does this difference exist? 1. High Commission Fees: Platforms often charge restaurants 25–40% commission per order. To compensate, restaurants increase their online prices. 2. Inflation of Platform Fees: Customers are charged platform fees, packaging fees, surge pricing, etc. This stacks up over the original menu price. 3. Profit Margins: With tighter margins due to delivery costs, restaurants add a buffer by raising platform prices. Example: In-Restaurant Price: Paneer Butter Masala – ₹220 Platform Price: ₹260 Final Checkout Price (after fees): ₹300+ That’s ₹80+ extra, not including delivery tips. Why Customers Are Concerned: • Hidden markups = loss of trust • Paying more for the same food • Leads to customers preferring direct ordering or dining out

4 Replies

Replies (4)

Tarun Suthar
•

The Institute of Chartered Accountants of India • 3m

Also we can't ignore 18% GST rates

1 Reply

Anonymous 1

Hey I am on Medial • 3m

The entire food delivery model is fundamentally broken and unsustainable. Restaurants operate on thin margins already (typically 3-5%), so 30% commissions are impossible to absorb. Customers aren't willing to pay what true delivery costs, drivers aren't paid fairly, and restaurants can't make money. The only winners are the platform shareholders. Instead of fighting over price differences, we should be questioning why we think getting restaurant food delivered should be affordable in the first place.

1 Reply

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Who's Really Winning? Most platforms today are cash-burning machines. ❌They charge high commissions from restaurants. ( 30% ) ( Menu and Platform Price difference 30-50% ) ❌They overcharge customers to make up for discounts. ❌They underpay driver

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