Policy · Commerce & Consumer Brands

Zomato contacts restaurants over price parity concerns

By Startup Enthusiast · 17 April 2026

What they do

Zomato is a major food delivery app connecting diners with local restaurants

The company contacted partners about pricing differences on other platforms like Swiggy and ONDC

This follows rising competition from rivals offering lower commission structures to attract users

Zomato representatives contacted restaurant partners regarding pricing discrepancies across different platforms.
Restaurants were informally advised to maintain price parity between Zomato and other apps.
Non-compliance with this advice could potentially impact a partner's presence on the platform.
No written communication or formal directive was shared by Zomato regarding these parity expectations.
Zomato denied involvement in influencing menu items, prices, or descriptions for its partners.
The company stated that pricing decisions are taken by individual restaurants per their business goals.
Menu price differences of up to 25% have been noted as a user pain point.
Restaurant owners blame high commissions and advertising costs for significant margin pressure.

Rising traction for Swiggy Toing and government-backed ONDC has increased market competition.
These emerging platforms offer lower commission structures, attracting cost-conscious restaurants.
Restaurants are adopting differential pricing to pass savings to consumers via these cheaper alternatives.
Platform promotions have caused friction, contributing to the stripping down of initiatives like Zomato Gold.

Zomato operates as a digital platform connecting customers with local dining establishments.
The company generates revenue through commissions charged to restaurant partners on orders.
Restaurants use the platform to reach a wider audience of potential diners.
Menu prices can vary significantly between the physical restaurant and the app interface.
High commission rates and advertising costs create financial pressure for restaurant operators.
Price parity is a key operational concern for maintaining consistent brand pricing.
Emerging competitors are leveraging lower fees to capture market share from incumbents.
User experience is impacted when customers see inconsistent pricing across different services.
The company manages relationships with thousands of restaurant partners across various cities.