Exit Menu: One in Three Eateries Wants Off Delivery Platforms

According to a study by economic policy think tank NCAER and investment firm Prosus, 30% of restaurants surveyed expressed intent to exit delivery apps. The average commission charged per order has surged from 9.6% in 2019 to 24.6% in 2023, eroding profitability for smaller establishments. Larger chains, however, leverage stronger bargaining power to secure lower commissions. The report also highlights consumer cost dynamics: direct restaurant-led deliveries are the most expensive, averaging ₹332 per order, compared to ₹302 via delivery apps and ₹260 for dine-in meals. This growing dissatisfaction underscores the tension between aggregator platforms and restaurant partners, raising questions about long-term viability.  

Key insights  
• 30% of restaurants surveyed want to exit delivery platforms due to high commissions  
• Average commission per order rose from 9.6% (2019) to 24.6% (2023)  
• Larger chains negotiate lower commissions, unlike smaller eateries  
• Direct restaurant-led delivery costs consumers more than app-based orders  
• Report highlights sustainability concerns in aggregator-driven food delivery  

Industry impact  
The findings suggest a potential shift in India’s food delivery ecosystem, with smaller restaurants exploring alternatives to balance profitability and customer reach.  

Sources: Times of India, Statista