Food Delivery App Commission Rates for Restaurants in India (2026)

The food delivery app commission rate in India is commonly reported at 18 to 30 percent of the order value, and the exact figure in your agreement depends on your city, your category, your order volume and how hard you negotiated at onboarding. That is the headline number, and it is roughly the same on both of the big apps. It is also the smallest part of the story, because commission is only the first of several deductions between what the customer pays and what reaches your bank.

This breakdown covers what the commission pays for and why the delivery app commission percentage varies, every charge stacked on top of it, a worked example on a ₹500 order, what the customer pays that never reaches you, how to read a payout statement, and what you can realistically do about the total.

What the aggregator commission covers and why it varies

Commission is the delivery app's fee for listing you, sending you orders and, in most cases, delivering them with its own riders. It is charged as a percentage of the order value, and the percentage is set per restaurant rather than published. The big apps in India use the same structure, and the rates they quote usually land within a few points of each other.

The factors that move it are consistent across owners' accounts. Big cities and competitive categories tend to carry higher rates. Restaurants that handle their own delivery are usually quoted lower rates than those using the app's riders. New restaurants are sometimes offered a lower introductory rate that rises after a few months. Established brands with high volume negotiate harder and pay less. If you were quoted a number at onboarding and never revisited it, the rate on your current statement is worth checking against it.

The charges stacked on top of commission

• Payment gateway charge. A percentage on online-paid orders, typically in the low single digits, deducted alongside commission.
• GST on the app's fees. Commission and other service charges attract GST at 18 percent, charged to you on top of the fees themselves.
• Discounts you fund. Promotional offers, and in many agreements a share of the app's loyalty program benefits, are deducted from the order value before commission is worked out on what remains, or after, depending on the scheme. Either way the restaurant funds most or all of the discount.
• Ads. Paid visibility is charged separately, usually per click or per impression, and billed against your payouts.
• Cancellation and complaint deductions. Orders cancelled after preparation, or refunded after a customer complaint, can be charged back in part or in full depending on who is held responsible.

The full list, including the ones that only appear in the fine print, is in what a food delivery app really costs a restaurant.

A ₹500 order, worked out

This is an illustration using assumed rates, not a figure from any particular agreement. Replace the percentages with the ones on your own statement.

On these assumptions, a ₹500 order pays out about ₹291, or roughly 58 percent of the menu value, before you have paid for ingredients, packaging, staff or rent. With a lower commission and no discount the figure improves; with ads running it gets worse. The point of the exercise is that the effective rate is not the commission rate, and most owners have never worked out their own.

What the customer pays that never reaches you

The customer's bill carries several lines that are not yours. The delivery fee goes to the app. The platform fee goes to the app. Since January 2022, the delivery apps collect the 5 percent GST on restaurant services ordered through them and pay it to the government themselves, so that tax passes through neither your books nor your payout. A customer who paid ₹620 for a ₹500 order has not given you ₹620; your payout is calculated from the ₹500.

This matters when customers compare prices. A restaurant that lists the same menu prices on a delivery app and on its own channel still ends up cheaper for the customer on its own channel, because the platform and delivery fees disappear, which is one reason the direct channel is the highest-margin one. The argument is set out in direct ordering for restaurants: the highest-margin channel explained.

How to read a delivery app payout statement

Payout statements follow a standard shape: gross order value for the period, minus discounts, minus commission, minus gateway charges, minus GST on those charges, minus ads and deductions, giving the net amount transferred. Payouts typically run on a regular cycle, with a short lag after the order week, and the cycle and lag are set in your agreement. The timing and the things that delay it are explained in delivery app payout cycles explained.

Three checks are worth doing every week. Confirm that the commission percentage applied matches your agreement. Add up the discount lines and compare them with what you thought you had agreed to fund. Look at the deductions line for cancellations and complaints and ask for details on anything you do not recognise.

A delivery app against your own channel, per order

Delivery is the honest counterweight. On a direct order you carry the rider cost, which for a short distance is often in the range of a few tens of rupees per order, and the comparison only works in your favour once you know that number. Most owners who run both channels keep the apps for discovery and move repeat customers direct, where the per-order cost is a fraction of the aggregator's.

What you can realistically do about it

Renegotiate once a year with your volume numbers in hand. Cut discounts that do not bring new customers. Treat ads as an experiment with a budget rather than a standing cost. Set packaging charges correctly. And give the customers who already like you a way to order from you directly, on the channel they already use. The tactics are listed in how to reduce food delivery app commission: 9 tactics that work, and the same arithmetic done order by order is in delivery app commission per order: what restaurants actually pay.

Tezzu is one way to run that direct channel. Customers order on your own WhatsApp number or your free store page, pay by UPI or card through Razorpay or cash on delivery, and the cost is a flat ₹10 per order with no commission, on plans from ₹999 a month. The full pricing is laid out in Tezzu pricing explained.

Frequently asked questions

What is the delivery app commission percentage for restaurants in India?

The apps do not publish a single rate. Restaurant owners commonly report commission between 18 and 30 percent of the order value, with the exact figure set per restaurant based on city, category, volume, whether the app delivers, and negotiation. Your agreement and your weekly payout statement show the rate that applies to you, and the two are worth comparing.

Is GST charged on food delivery app commission?

Yes. Commission and other service fees a delivery app charges a restaurant attract GST at 18 percent, which is deducted along with the fees. Separately, since January 2022 the delivery apps collect the 5 percent GST on the restaurant service itself from the customer and pay it to the government, so that amount does not pass through the restaurant's payout.

Do delivery apps charge commission on the delivery fee or platform fee?

No, because those amounts belong to the app rather than to you. Commission is calculated on the order value of the food, usually after any discount you fund. The delivery fee and platform fee the customer pays go to the app in full and do not appear in your payout at all.

Can I negotiate the food delivery commission in India?

Often, yes, especially if you have steady volume, good ratings and are willing to handle your own delivery. Rates are set per restaurant, and account managers have some room to move. Ask with your numbers ready, revisit it yearly, and remember that reducing funded discounts and ad spend can lower your effective rate even when the headline commission does not change.