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Swiggy vs Zomato Commission Structure: What Every Restaurant Must Know in 2025

Updated: May 14

Introduction

If you’re running a restaurant in India, chances are you’re listed on either Swiggy, Zomato, or both. But while these platforms bring volume, they also come with one big trade-off: commissions.

In 2025, commissions have quietly gone up, and many restaurants don’t fully understand the hidden costs involved. This guide breaks it down, compares Swiggy vs Zomato in clear terms, and helps you make smarter business decisions.



Swiggy vs Zomato Commission Comparison (2025 Snapshot)

Feature

Swiggy

Zomato

Base Commission Rate

18–28%

18–28%

Delivery Fee (Platform Cut)

~5–8%

~5–7%

Packaging Charges

Optional (you cover)

Optional (you cover)

Sponsored Ads Costs

₹500/day minimum

₹400/day minimum

GST on Commission

18%

18%

Payment Cycle

Weekly

Weekly

Early Settlement Fee

0.75–1.2% per order

1.0–1.5% per order

Note: Exact commissions vary by city, cuisine, and negotiation with your account manager.



What This Actually Means for Your Profit Margins

Let’s say your dish sells for ₹300. Here's what you'd actually take home:


On Swiggy (example):

  • Selling Price: ₹300

  • Commission @ 25% = ₹75

  • GST on commission = ₹13.5

  • Platform Delivery Cut = ₹20

  • You Receive = ₹191.5


On Zomato (example):

  • Selling Price: ₹300

  • Commission @ 25% = ₹75

  • GST on commission = ₹13.5

  • Platform Delivery Cut = ₹18

  • You Receive = ₹193.5


You lose over 35% of revenue before raw materials, packaging, rent, or labor.



Hidden Costs Most Restaurants Miss

  • Deep Discounts: Often subsidized by the restaurant, not the platform.

  • Delivery Penalties: Delay in prep time = automatic rating drops.

  • In-App Ranking: You may need to pay to rank in your own area.

  • Forced Participation in Campaigns: Some promotions are opt-out only.



So, Which One is Better?

It depends on your category and market:

Scenario

Better Platform

High-ticket items (₹400+)

Zomato (less promo-heavy)

Budget meals + combos

Swiggy (more volume)

Cafés, snacks, beverages

Swiggy (impulse orders)

Fine dining / cuisine-focused

Zomato (more curated audience)



What You Can Do to Stay Profitable

  1. Negotiate Your Commission

    • If your monthly order count is high (>300), ask for a tiered slab.

  2. Optimize Your Menu

    • Increase margin on combos and high-selling items.

  3. Use Sponsored Ads Strategically

    • Don’t run ads 24/7. Use peak hours only (see our blog: Best Time to Run Ads on Swiggy/Zomato).

  4. Build Direct Ordering Funnels

    • WhatsApp ordering, website links, and QR codes can help you own the customer.

  5. Track Contribution Margin, Not Just Revenue

    • Know which dishes actually bring profit after platform deductions.



Visual: Profit Margin Breakdown (Per ₹300 Order)



Final Thoughts

Both Swiggy and Zomato are powerful growth channels—but if you don't play the commission game smartly, they’ll eat into your profits faster than you think.

Want help evaluating your platform performance or renegotiating commissions?




 
 
 

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