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A small restaurant owner in India has exposed Zomato’s alleged exploitative fee structure, revealing how the food delivery giant deducted over 97% of his earnings, leaving him with just Rs 415 from Rs 16,486 in orders.
The news came to light when an X user named Manish shared a series of shocking screenshots on X on Saturday, highlighting the financial strain small businesses face on platforms like Zomato and Swiggy.
As his post went viral, restaurant owners and customers demanded accountability and regulatory action in India’s booming food delivery industry.
The Shocking Numbers: Rs 16,486 reduced to Rs 415
Manish’s X post laid bare the harsh reality of partnering with Zomato. From February to May 2025, his restaurant generated 36 orders worth Rs 16,486.70, but after Zomato’s deductions, he received a mere Rs 415.48, a staggering 97.5% deduction.
The biggest culprit, as in his screenshots, was Zomato’s “Investments in growth services and miscellaneous deductions,” which alone accounted for Rs 9,884.98 across the cycles.
In the March 1-31 cycle, 13 orders worth Rs 4,800.60 were slashed to a Rs 0.00 payout after a Rs 3,107.75 growth services fee — a 65% cut.
Another cycle (Mar 10-16) saw four orders worth Rs 1,394.40 reduced to Rs 0.00, with Rs 921.63 (66%) deducted for the same vague charges. Manish alleged that these fees, including ad placements, were applied without his consent.
The financial breakdown has sparked outrage among small restaurant owners, as many pointed out that big brands often face zero charges for growth services, while small players like Manish bear the brunt. Another user shared a similar story with Swiggy, where a friend earned Rs 32,000 but received only Rs 18,000, a 44% deduction.
Users on X also called for government intervention, tagging the Ministry of Law and Justice to curb such practices by food delivery platforms.
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A Growing Crisis in India’s Food Delivery Sector
India’s food delivery market, projected to hit $60 billion by 2025, thrives on the backs of small restaurants, yet high commissions (20-30%) and hidden fees threaten their survival.
Manish’s case highlights a systemic issue: small businesses are squeezed dry while platforms prioritise profits. With no regulatory caps on fees in India, unlike some global markets, the question remains of whether the government will step in to protect small restaurants.
