Zomato Faces Continued Flak Over Long-Distance Fee, NRAI Plans Talks with Deepinder Goyal

Zomato’s newly introduced long-distance service fee has sparked concern among restaurants, prompting the National Restaurant Association of India (NRAI) to discuss the matter with the foodtech company this month.

As per Inc42 reports, the restaurant industry body already held a round of discussions with Eternal CEO Deepinder Goyal. However, at that time, they did not come up with the solution. The NRAI will now hold a meeting with Goyal to find a solution.

In May, Zomato increased the cost burden on restaurants for fulfilling orders, particularly those placed from nearby locations, as it pushes to boost profitability on every order. As per the document, for orders valued above ₹150, restaurants will be charged an extra ₹20 if the delivery address is 4–6 km away from their outlet or cloud kitchen.

This fee doubles to ₹40 for deliveries exceeding 6 km. For lower-value orders—those priced under ₹150—no additional fee will apply as long as the delivery is within a 6 km radius. If these small orders are delivered beyond 6 kilometres, Zomato will collect Rs 40 per order from the restaurant.

However, the total amount payable to Zomato, including all components, will be capped at 30% of the order value in commission. It means that no restaurant partner will be asked to pay more than 30% of the order value, it added.

Restaurants vs Swiggy-Zomato

The long-distance delivery fee has become the latest topic of discussion between Zomato and its restaurant partners. Tensions between eateries and food delivery platforms like Zomato and Swiggy have flared in the past over issues such as high commission rates, marketing charges, and promotional expenses.

Outlook Business has recently reported that several restaurateurs accused Zomato and Swiggy of running advertisements and discounts on partner restaurants without their consent.

Restaurateurs said that in many such cases, the amount credited to the restaurant’s account was lower than expected as the platform deducted charges for ads or discounts, often without prior approval, directly from their earnings.

While this has been happening for over a year, restaurant owners say it has become much more frequent in recent months. When concerns are raised with area managers of the food-delivery platforms, “backend technical issues” are cited, they added.

NRAI vs Swiggy-Zomato

The NRAI and foodtech giants have been at loggerheads since 2021, when the restaurant industry body had asked the Competition Commission of India (CCI) for a comprehensive investigation into Zomato and Swiggy over their "inherently anti-competitive activities".

It raised concerns about service bundling, data masking, and excessive fees, as well as deep discounting, platform neutrality violations, and a lack of transparency.

In 2022, after finding a prima facie case, the CCI launched a comprehensive investigation. Following a year‑long probe, the CCI’s director‑general submitted a confidential report in October 2023, based on data from both platforms.

In April 2024, the CCI granted the NRAI limited access to its antitrust investigation findings through the confidentiality ring, a mechanism designed to balance transparency and commercial sensitivity during regulatory reviews.

However, Zomato and Swiggy challenged this decision in the Karnataka High Court, arguing that disclosing sensitive information, even within a protected framework, could cause irreparable commercial harm.