Food delivery app commission looks different on every continent and yet lands in almost the same place: a marketplace takes somewhere between 15 and 30 percent of the order value, charges extra for visibility, and the restaurant's response everywhere is to move repeat customers to a channel it owns. If you run a restaurant in India and wonder whether the Indian delivery apps are unusually expensive, the short answer is no; they sit within the global range. What differs between countries is the shape of the fee: flat percentage, tiered plans, separate charges for marketing and delivery, lower rates for self-delivery, and in a few cities, legal caps. This post compares the models by market and explains what the pattern means for your pricing.
The five commission models you will meet
- Flat percentage of order value. The simplest and most common in India. One number, negotiated at signing, applied to every delivery order.
- Tiered plans. The restaurant picks a plan; higher commission buys wider delivery radius, more placement and loyalty-programme inclusion. Common in North America.
- Split marketing and delivery commission. One percentage for being listed and promoted, another for the platform's rider. Restaurants that self-deliver pay only the first part.
- Commission plus payment processing. A separate processing charge on top of commission, which is how card-heavy markets often present it.
- Subscription or flat fee for the restaurant. Less common on the big marketplaces, more common on ordering software that sits beside them.
Discounts, ads, packaging handling and taxes on the commission invoice apply on top in every market. The headline percentage is never the whole cost; the food delivery app commission breakdown for India shows how the extras stack up.
Country-by-country comparison
The figures below are the ranges commonly reported by restaurant owners and trade coverage, described by model rather than quoted as exact prices. Platforms publish and change their own rates; check the relevant partner page before relying on any number.
| Market | Market structure | Model | Commonly reported range on delivery orders |
|---|---|---|---|
| India | Two dominant national apps | Flat percentage negotiated per restaurant, plus GST on commission, discounts and ads | 18 to 30 percent |
| United States | Three national apps | Tiered plans; higher tier buys more reach; lower rate for pickup; caps in some cities | Roughly 15 to 30 percent by tier |
| United Kingdom | Three major apps, two of them global | Percentage commission; lower rate when the restaurant self-delivers; some plans add a fixed service charge | Roughly 14 to 30 percent depending on who delivers |
| UAE and Gulf | One dominant regional app plus global and super-app rivals | Percentage commission negotiated by outlet, with promotions funded by the restaurant | Roughly 20 to 30 percent |
| Singapore and Malaysia | Two or three regional apps | Percentage commission with lower rates for self-pickup; heavy promotional co-funding | Roughly 25 to 30 percent |
| Australia | Two global apps plus a local one | Tiered plans similar to the US; lower rates for restaurant self-delivery | Roughly 15 to 30 percent |
| Brazil and Latin America | One dominant local app plus a regional rival | Plans with commission plus optional platform delivery; payment fee separate | Roughly 12 to 27 percent plus payment charges |
| China | Two dominant super-apps | Commission with separate delivery and service components, varying by city and category | Widely reported in the high teens to mid twenties |
For the US market in particular, see US delivery app commission fees and what US restaurants actually pay per order, which describe the tier structures as listed on each platform's website. For the Gulf, food delivery app commission in the UAE covers the local picture.
Why the number lands in the same band everywhere
A marketplace has three costs it must recover from the restaurant: riders, customer acquisition, and its own margin. Rider cost is a large fixed chunk per order in every country, which is why platforms give a lower rate when you deliver yourself. Customer acquisition is what the tiered plans sell back to you. The remaining margin is what competition sets, and in most markets two or three platforms compete for the same restaurants, so the band stays similar.
The restaurant side looks the same too. Net margins in the single digits to mid teens are typical for independent restaurants almost everywhere, so a 25 percent commission is larger than the whole profit on a delivery order unless prices are marked up on the app. That is why restaurants from Mumbai to Manchester mark up app menus, and why the direct ordering conversation is global rather than Indian.
Where governments stepped in
During the pandemic several US cities passed caps on what delivery platforms could charge restaurants, typically limiting delivery commission to around 15 percent with a smaller cap on marketing fees, and some of those caps were later made permanent or revised. Platforms responded by adding customer-side fees in those cities. Some other countries have examined commission levels through competition or restaurant-association channels without legislating caps. India has no cap; commission is a private contract, which is why negotiating at signing matters so much here.
What this means for an Indian restaurant
- You are not being singled out. Indian delivery app commission sits in the global band. Complaining about the rate changes nothing; changing your channel mix does.
- Self-delivery discounts are worth asking about. In several markets, delivering yourself cuts the rate meaningfully. If you have riders, ask your account manager what the platform offers for self-delivery orders.
- Tiering is coming, in effect. Ads and promoted placement in India already function like the higher tiers abroad: pay more, be seen more. Budget for them deliberately or not at all.
- Mark up the app menu, like everyone else. A 10 to 20 percent markup over counter prices is standard globally and keeps the delivery order from losing money.
- Move the repeat order. The common thread in every market where restaurants have pushed back successfully is a direct channel for regulars, with the app kept for discovery. Direct ordering explains why that channel carries the highest margin wherever you are.
How direct ordering is priced by comparison
Direct ordering tools follow the subscription or per-order model rather than commission. The restaurant pays a monthly fee and sometimes a small flat amount per order, and keeps the full order value minus payment processing. On a ₹400 order, the difference between 25 percent commission and a flat per-order fee is close to ₹100 before discounts are counted. Commission-free online ordering walks through what that model costs in practice.
Tezzu is one example in India: ordering on your own WhatsApp number plus a free store page, with plans from ₹999 a month, ₹10 per order and no commission, and USD plans with Stripe payments for merchants in the US. The structure is the same whichever country you are in: a known flat cost per order instead of a share of everything you sell.
Compare a flat fee with a percentage
See what a monthly plan plus ₹10 per order looks like next to the commission band in the table above.
See pricingFrequently asked questions
Which country has the highest food delivery app commission?
Reported ranges overlap heavily, with most markets topping out near 30 percent on platform-delivered orders. Southeast Asian and Gulf markets are often cited at the upper end, while tiered plans in North America and self-delivery rates in the UK can bring the effective rate down to the mid teens. Extras such as ads and funded discounts matter more than small differences in the headline rate.
Is delivery app commission in India higher than in the US?
Broadly similar. Indian delivery app commission is commonly reported at 18 to 30 percent, and the US apps' tiered plans, as listed on their websites at the time of writing, span a comparable band depending on the tier chosen. The main difference is structure: India uses a negotiated flat percentage, the US uses published tiers.
Why do delivery apps charge restaurants so much?
The commission covers riders, customer acquisition and the platform's own margin. Rider cost per order is the largest piece, which is why most platforms charge less when the restaurant delivers itself. Marketing and placement are sold back to restaurants through tiers or ads. Competition between two or three platforms in each market keeps the band similar across countries.
Do any countries cap food delivery app commission?
Several US cities introduced caps during the pandemic, typically around 15 percent for delivery with a smaller cap on marketing fees, and some have kept or revised them since. Platforms often added customer-side fees in response. India has no statutory cap, so the rate is whatever your partner agreement says, which makes negotiation at signing and renewal important.