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Getting food delivered at the doorstep has completely changed how people eat and live. Whether it’s a working professional with a 9-to-5 job, a homemaker, or even a student craving a treat, food delivery apps have become a go-to. They’re perfect for days when you just don’t feel like cooking or going out, it’s all about comfort and ease. But while it all seems super convenient on the surface, there’s another side to the story, one that’s not as perfect as it looks.
The Bigger Picture to the industry
Currently as per the IMARC Group, India’s online food delivery market is booming. In 2024, the market is worth about USD 45.15 billion and is expected to hit USD 320.31 billion by 2033, growing at 23.1% each year. The rise is being driven by wider smartphone use, higher incomes, and more demand for different kinds of food. Still, beneath this rapid growth, customers face some challenges. These include:
Instant vs Real : What people see online, especially on social media, creates a craving for fast service. Food delivery apps add to this by offering quick convenience, making people expect everything to happen instantly. However, the smooth experience is disrupted when there is a delay or when a certain meal item is unavailable. A wait of even ten or fifteen minutes may seem longer than it actually is. The effort required to prepare and transport meals is frequently disregarded, and the discrepancy between quick taps and actual timing causes silent annoyance.
Logistics Issues : Sometimes, your order might take a bit longer and it’s not in direct control. Bad weather, traffic, or roadblocks can slow things down. There aren’t always enough drivers available, especially during rush hours, and they can run into issues like parking or tricky addresses. Some platforms have their own delivery teams, while others use third-party partners who might not be close by when the order comes in. And if a delivery is part of a batch, it might take longer if it isn’t the first stop.
Visual Drift : Food delivery apps often present a perfect picture visually stunning meals paired with smooth, effortless ordering building an expectation of an equally flawless overall experience. However, once the food is in transit, reality tends to shift. Despite good packaging, items may arrive less hot, a bit soggy, or not quite as picture-perfect, leaving the actual experience feeling just a little short of what was imagined.
However, what’s actually far from reality is the idea of ‘free delivery’, a catchy promise that’s hardly ever truly free. Hidden fees like rain charges, festive surcharges, or long distance delivery costs frequently appear at checkout, even for those with premium memberships. Most “free” offers only apply beyond a certain order value or within a limited area, and don’t cover platform fees or taxes.
Restaurants, especially smaller ones, end up bearing the burden of extra charges, including high commissions, making it harder for them to stay profitable. Meanwhile, platforms quietly tweak policies, leaving both customers and businesses paying more than expected. A recent example is the introduction of extra charges by an online food aggregator for long-distance deliveries on orders above ₹150. These added costs are absorbed by restaurants, not the customers, making it even harder, especially for smaller outlets to stay financially healthy.
What’s the Way Out?
With new players like BigBasket and Rapido stepping into the online food delivery scene, the landscape is starting to shift. Rapido, for example, claims it will charge restaurants a lower commission of just 8–15%, depending on the order value, compared to the higher rates demanded by established platforms.
On the surface, that sounds like a win for restaurants. But even small commission fees add up quickly, especially for smaller outlets. The cumulative cost per order can become a burden, often pushing restaurants to raise menu prices to make up for the lost margin.
Some newer platforms are now offering alternative models, such as zero-commission structures with a fixed monthly subscription fee. This approach can be more sustainable because:
- Fixed costs: Restaurants know what they’re paying each month, regardless of how many orders come in.
- Better profit control: No matter the order value, the profit margin remains more stable.
- Customer trust: Transparent pricing helps avoid hidden costs that might be passed on to customers.
Hence, while lower commission rates are a step in the right direction, models that remove per-order fees altogether could offer a more viable, long-term solution for both restaurants and customers.