India's food delivery industry has become one of the country's biggest digital success stories, connecting millions of consumers with restaurants through a few taps on a smartphone. But behind the
India's food delivery industry has become one of the country's biggest digital success stories, connecting millions of consumers with restaurants through a few taps on a smartphone. But behind the convenience that fuelled the sector's rapid growth, a growing number of small restaurant owners say the economics of online ordering have increasingly worked against them.After years of accepting high commissions as the price of visibility, independent eateries are beginning to question whether the existing model is sustainable. The result is a growing push toward alternative delivery approaches that promise greater control over pricing, customer relationships and profitability.Industry participants say the debate is no longer about whether restaurants should be online. Instead, it is about whether commission-driven delivery models continue to serve the interests of the businesses that prepare the food.The cost of being visibleFor many independent restaurants, joining food delivery platforms was not optional. As consumer behaviour shifted online, restaurants had little choice but to establish a presence on major apps to remain competitive. However, that visibility often came with significant costs. Restaurant owners have long argued that commissions can take a sizeable bite out of already-thin margins. To compensate, many establishments increased menu prices for online orders, creating a growing gap between delivery and dine-in pricing.For smaller operators, the challenge is particularly acute. Unlike large chains that can absorb additional costs through scale, neighbourhood cafes, local biryani outlets and family-run restaurants often have limited room to manoeuvre. Many owners say the situation has forced them into difficult choices between profitability, pricing and quality.Why restaurants are pushing backThe resistance to commission-driven models is not solely about the percentage charged on each order. It also reflects broader concerns about control and ownership in the digital economy.A restaurant owner in Noida argued that while they prepare the food and manage the customer experience, platforms control customer data, visibility and engagement. This can make it difficult for businesses to build direct relationships with diners or encourage repeat orders outside the platform ecosystem.As a result, restaurant operators increasingly view commissions as part of a larger conversation about dependence on digital intermediaries. The growing dissatisfaction has led many businesses to explore alternative ways of reaching customers online.A search for new modelsThe emergence of zero-commission and low-commission delivery platforms has added a new dimension to the debate. Aravind Sanka, Co-founder, Ownly, a zero-commission food delivery platform, believes the traditional commission structure places disproportionate pressure on smaller businesses. For years, small restaurant owners have had to choose between profitability and visibility. When a significant portion of every order goes toward commissions, it becomes difficult to maintain pricing, quality and sustainable growth, he said.According to Aravind Sanka, Co-founder, Ownly, alternative delivery models seek to create a more balanced relationship between restaurants, consumers and delivery partners. The idea is simple: restaurants should be able to retain the value of the food they prepare while customers receive transparent pricing. Technology should support local businesses rather than dictate how they operate, he added.Supporters of established aggregator models argue that commissions help fund logistics infrastructure, customer acquisition, technology development and marketing campaigns that bring restaurants access to millions of consumers. They maintain that these investments create value for businesses that may not otherwise have the resources to build large digital audiences. The differing views highlight a fundamental question facing the sector: who should capture the greatest share of value generated by a food delivery transaction?Consumers are joining the conversationThe commission debate is increasingly resonating with consumers as well. Many urban diners have become more aware of pricing differences between restaurant menus and delivery apps. Consumers frequently compare online and offline prices and are paying closer attention to delivery fees, platform charges and service costs.This growing scrutiny has increased demand for transparency. Customers want to know whether higher prices reflect restaurant decisions or platform economics. A customer ET talked to said this shift in consumer awareness could become a significant factor shaping future competition within the food delivery market.India's appetite for online food ordering remains strong, and few expect consumers to abandon the convenience that delivery platforms provide. Yet the industry's next phase may be defined less by how quickly food reaches a customer's doorstep and more by how value is distributed across the ecosystem. For years, commission-driven delivery models dominated the conversation. Today, independent restaurants are increasingly questioning whether those arrangements remain fit for purpose.