Term

Aggregator commission

Aggregator commission is the share of each order's value, commonly 18 to 30 percent in India, that a food delivery app keeps before paying the restaurant.

Aggregator commission is the percentage of each order's value that a food delivery app keeps before paying a restaurant. In India it is commonly 18 to 30 percent of the order value, with 18 percent GST added on top of the commission amount. It is deducted automatically, so the restaurant never sees the full amount in its account; it sees a periodic payout, usually weekly, after commission, GST on commission, payment charges and any ad or discount costs are taken out.

Why it matters

Commission is the single largest cost line for most restaurants that rely on delivery apps, bigger than rent for many cloud kitchens. Because it is a percentage, it grows with every order, and it is taken before you have paid for ingredients, packaging or staff. A restaurant with a 60 percent gross margin on food can see that margin drop to 30 percent or less on aggregator orders once commission, GST and discounts are counted. That is why the term comes up in every conversation about direct ordering.

Example

A customer orders ₹500 of food on a delivery app. At 25 percent commission, ₹125 goes to the app. GST on that commission adds ₹22.50. If the app also charges around 2 percent as payment processing, that is another ₹10. The restaurant's payout is about ₹342, before packaging and before any discount it agreed to fund. Over 1,000 such orders a month, roughly ₹1.58 lakh leaves the business in commission and charges. The full line-by-line breakdown is in aggregator commission vs direct ordering, and the tactics for bringing it down are in how to reduce delivery app commission.

On Tezzu, the same ₹500 order placed on your own WhatsApp number or store page costs a flat ₹10 platform fee plus payment gateway charges if paid online, with no commission on the order value.