Food delivery ecosystem sees push for zero-commission model

India’s food delivery market has long been dominated by the duopoly of Zomato and Swiggy. However, a surge in demand and increasing competition from emerging players offering zero-commission models are reshaping the landscape.

The food delivery market is projected to more than triple in size, reaching ₹2.12 lakh crore by 2030, according to a report from Swiggy and Bain & Company.

WAAYU, founded by Mandar Lande and Anirudha Kotgire, operate on a subscription-based business model, which is designed to be affordable and easily accessible for restaurants.

“There’s a gradual shift that is happening towards the zero commission model. In this model, we are not participating in transactions at all. So whatever orders these restaurants get, they can do their business online, we charge them monthly subscriptions,” said Mandar Lande.

The monthly subscription is to the tune of ₹2,000 per month with no onboarding fees for the restaurants, he added. The app has already onboarded more than 3,000 restaurants across Mumbai, Pune, Hyderabad, Bengaluru , and Delhi.

“We have also right now experimented in a tier two city of Belgavi, wherein we have onboarded 70 per cent of the restaurants there,” he added.

Seller marketplace

In September, WAAYU joined the government-backed Open Network for Digital Commerce (ONDC) as a seller marketplace to bolster restaurants’ and consumers’ access to the food delivery ecosystem. Besides, it has partnered with buyer apps such as Paytm, Ola, and Tata Neu to expand its customer base and market presence.

Industry executives have highlighted that the resturants are looking for platforms where they are not charged a hefty comission rate.

“To ensure that the zero-commission model is sustainable in the long term, the founders want to offer a model that doesn’t charge commissions, creates value for restaurants and adds more technology to its platform,” said another co-founder who did not wished to be named.

While the zero-commission model presents an attractive alternative to traditional food delivery platforms, industry experts acknowledge several challenges that could impact its scalability and long-term success.

Unlike commission-based platforms that generate revenue per transaction, subscription-based services must ensure that restaurants see enough value in their monthly fee. Companies attempting to handle ordering, delivery, and technology all in one have struggled to keep costs low.

The push for a commission-free model reflects a shift in the food delivery landscape. While challenges remain, new innovations could redefine how restaurants and consumers interact with digital platforms, making the industry more equitable for all stakeholders.