ONDC in Food Delivery: The End of the Swiggy and Zomato Monopoly?

For years, Swiggy and Zomato have reigned as the giants of India's food delivery scene, with Zomato holding about 58% of the market share and Swiggy at 34% as of 2024. These platforms have become so synonymous with online food ordering that it's hard to imagine a time when they weren't the go-to choice. But this dominance hasn't come without its challenges.

Restaurants, especially the smaller ones, have been feeling the pressure of these platforms’ high commission rates. And consumers, while enjoying the convenience, have often ended up paying inflated prices due to hidden fees. That's where the Open Network for Digital Commerce (ONDC) steps in. This government-backed initiative is designed to shake things up, providing a decentralized, more inclusive platform where buyers and sellers can interact directly. It's like how UPI revolutionized payments in India—making things simpler, more transparent, and fairer for everyone involved.

The ONDC Advantage

One of the biggest complaints against Swiggy and Zomato is their hefty commission rates, which typically range between 25% and 35%. These fees take a massive chunk out of restaurants' profits, making it tough for them to grow, especially small and medium-sized businesses or restaurants. ONDC offers a refreshing change, charging much lower fees—around 8% to 10%—which allows restaurants to keep more of their hard-earned money.

But it's not just about the lower fees. ONDC gives restaurants greater control over their business. Unlike traditional platforms that hold onto customer data, ONDC focuses on direct communication between restaurants and consumers. This means restaurants can personalize their offerings based on customer preferences, and customers can get a better experience. It's about building a real connection—where restaurants know their customers by name, favorite dishes, and the special touches that make their dining experience stand out.

For years, Swiggy and Zomato have reigned as the giants of India's food delivery scene, with Zomato holding about 58% of the market share and Swiggy at 34% as of 2024. These platforms have become so synonymous with online food ordering that it's hard to imagine a time when they weren't the go-to choice. But this dominance hasn't come without its challenges.

Restaurants, especially the smaller ones, have been feeling the pressure of these platforms’ high commission rates. And consumers, while enjoying the convenience, have often ended up paying inflated prices due to hidden fees. That's where the Open Network for Digital Commerce (ONDC) steps in. This government-backed initiative is designed to shake things up, providing a decentralized, more inclusive platform where buyers and sellers can interact directly. It's like how UPI revolutionized payments in India—making things simpler, more transparent, and fairer for everyone involved.

The ONDC Advantage

One of the biggest complaints against Swiggy and Zomato is their hefty commission rates, which typically range between 25% and 35%. These fees take a massive chunk out of restaurants' profits, making it tough for them to grow, especially small and medium-sized businesses or restaurants. ONDC offers a refreshing change, charging much lower fees—around 8% to 10%—which allows restaurants to keep more of their hard-earned money.

But it's not just about the lower fees. ONDC gives restaurants greater control over their business. Unlike traditional platforms that hold onto customer data, ONDC focuses on direct communication between restaurants and consumers. This means restaurants can personalize their offerings based on customer preferences, and customers can get a better experience. It's about building a real connection—where restaurants know their customers by name, favorite dishes, and the special touches that make their dining experience stand out.

(Credit: Daffodil Software)

How ONDC Helps Restaurants Build Stronger Relationships

What makes ONDC really stand out is how it helps restaurants to connect directly with their customers. Traditional platforms often withhold valuable customer details, leaving restaurants in the dark about who their customers are. But with ONDC, restaurants have access to insights like customer preferences, order history, and feedback. This allows them to make every interaction feel personal—whether it's recommending a favorite dish or sending a special offer for their next meal. Plus, ONDC gives restaurants the freedom to communicate with customers through messages or loyalty rewards, enabling stronger, more meaningful relationships. It's all about creating a community where both the restaurant and customer feel like they're on the same team.

ONDC's Early Impact and Growing Adoption

Since launching, ONDC has made impressive strides in the food delivery space. As of five months ago, the platform was handling around 60,000 orders per day, which is about 3% of the combined order volumes of Swiggy and Zomato. Though it's still early days, this momentum suggests that more consumers and restaurants are looking for a change.

(Credit: Daffodil Software)

How ONDC Helps Restaurants Build Stronger Relationships

What makes ONDC really stand out is how it helps restaurants to connect directly with their customers. Traditional platforms often withhold valuable customer details, leaving restaurants in the dark about who their customers are. But with ONDC, restaurants have access to insights like customer preferences, order history, and feedback. This allows them to make every interaction feel personal—whether it's recommending a favorite dish or sending a special offer for their next meal. Plus, ONDC gives restaurants the freedom to communicate with customers through messages or loyalty rewards, enabling stronger, more meaningful relationships. It's all about creating a community where both the restaurant and customer feel like they're on the same team.

ONDC's Early Impact and Growing Adoption

Since launching, ONDC has made impressive strides in the food delivery space. As of five months ago, the platform was handling around 60,000 orders per day, which is about 3% of the combined order volumes of Swiggy and Zomato. Though it's still early days, this momentum suggests that more consumers and restaurants are looking for a change.

The openness of the ONDC network has also attracted a diverse range of participants—from major restaurant chains to local eateries—making the platform more inclusive and accessible. The transparency and commitment to fair competition resonate strongly with many in the industry, positioning ONDC as a serious contender in the food delivery market.

Pricing: How ONDC Stacks Up Against Swiggy and Zomato

Price transparency has been a hot topic for years, and ONDC is stepping up with a model that benefits both restaurants and consumers. Traditional platforms like Swiggy and Zomato charge restaurants hefty commissions, ranging from 25% to 35% per order. This often forces restaurants to jack up menu prices to stay profitable, resulting in higher costs for consumers.

In contrast, ONDC’s commission rates are much more favorable—typically between 8% and 10%. This means restaurants can keep prices competitive without needing to increase them to cover high commissions. The result? Consumers pay lower prices, and restaurants can maintain healthier profit margins.

The openness of the ONDC network has also attracted a diverse range of participants—from major restaurant chains to local eateries—making the platform more inclusive and accessible. The transparency and commitment to fair competition resonate strongly with many in the industry, positioning ONDC as a serious contender in the food delivery market.

Pricing: How ONDC Stacks Up Against Swiggy and Zomato

Price transparency has been a hot topic for years, and ONDC is stepping up with a model that benefits both restaurants and consumers. Traditional platforms like Swiggy and Zomato charge restaurants hefty commissions, ranging from 25% to 35% per order. This often forces restaurants to jack up menu prices to stay profitable, resulting in higher costs for consumers.

In contrast, ONDC’s commission rates are much more favorable—typically between 8% and 10%. This means restaurants can keep prices competitive without needing to increase them to cover high commissions. The result? Consumers pay lower prices, and restaurants can maintain healthier profit margins.

A Price Comparison: ONDC vs. Swiggy and Zomato

Let’s break it down with an example of a dish priced at ₹200:

Swiggy/Zomato:
- Commission (25%): ₹50
- Adjusted Menu Price: ₹250
- Consumer Pays: ₹250
- Restaurant Receives: ₹200
ONDC:
- Commission (10%): ₹20
- Adjusted Menu Price: ₹220
- Consumer Pays: ₹235
- Restaurant Receives: ₹215

As you can see, with ONDC, consumers pay less, and restaurants keep more than the original price. In fact, reports have shown that menu items on ONDC platforms can be priced 30% to 50% lower than on Swiggy and Zomato.

The Road Ahead for ONDC

While ONDC has a lot of promise, it’s not without its challenges. Scaling up to compete with the massive reach of Swiggy and Zomato will take time, especially when it comes to building a robust logistics network and ensuring consistent service quality. ONDC will need to keep earning the trust of both restaurants and consumers.

At the same time, Swiggy and Zomato aren’t sitting idle. Both companies are expanding their services beyond food delivery, like Swiggy’s Instamart, which is growing rapidly. As these players continue to innovate, the competition is bound to get fiercer.

A Price Comparison: ONDC vs. Swiggy and Zomato

Let’s break it down with an example of a dish priced at ₹200:

Swiggy/Zomato:
- Commission (25%): ₹50
- Adjusted Menu Price: ₹250
- Consumer Pays: ₹250
- Restaurant Receives: ₹200
ONDC:
- Commission (10%): ₹20
- Adjusted Menu Price: ₹220
- Consumer Pays: ₹235
- Restaurant Receives: ₹215

As you can see, with ONDC, consumers pay less, and restaurants keep more than the original price. In fact, reports have shown that menu items on ONDC platforms can be priced 30% to 50% lower than on Swiggy and Zomato.

The Road Ahead for ONDC

While ONDC has a lot of promise, it’s not without its challenges. Scaling up to compete with the massive reach of Swiggy and Zomato will take time, especially when it comes to building a robust logistics network and ensuring consistent service quality. ONDC will need to keep earning the trust of both restaurants and consumers.

At the same time, Swiggy and Zomato aren’t sitting idle. Both companies are expanding their services beyond food delivery, like Swiggy’s Instamart, which is growing rapidly. As these players continue to innovate, the competition is bound to get fiercer.

Conclusion

The entry of ONDC into India’s food delivery market marks a major shift toward a more inclusive and competitive industry. By addressing long-standing concerns like high commissions and data transparency, ONDC offers a strong alternative to the existing duopoly. However, its success will depend on its ability to execute well and adapt to an ever-changing, fast-paced industry.

As consumers and restaurants explore this new platform, the dynamics of food delivery in India are set to change, and ONDC could be the key to breaking Swiggy and Zomato's monopoly once and for all.

Conclusion

The entry of ONDC into India’s food delivery market marks a major shift toward a more inclusive and competitive industry. By addressing long-standing concerns like high commissions and data transparency, ONDC offers a strong alternative to the existing duopoly. However, its success will depend on its ability to execute well and adapt to an ever-changing, fast-paced industry.

As consumers and restaurants explore this new platform, the dynamics of food delivery in India are set to change, and ONDC could be the key to breaking Swiggy and Zomato's monopoly once and for all.

ONDC in Food Delivery: The End of the Swiggy and Zomato Monopoly?

ONDC in Food Delivery: The End of the Swiggy and Zomato Monopoly?