In the absence of consistent pricing between restaurants and delivery aggregators, customers have called for greater transparency in pricing strategies.
Published Dec 24, 2024 | 4:21 PM ⚊ Updated Dec 31, 2024 | 10:49 AM
Zomato and Swiggy price differences in Chennai
Residents and visitors in the Tamil Nadu capital Chennai are voicing concerns over pricing differences between dining at restaurants and ordering through aggregators like Zomato and Swiggy.
Diners reported stark discrepancies between restaurant menu prices and what they are charged through delivery aggregators, even after excluding added platform fees, and raised questions about affordability and fairness.
When South First spoke to representatives of food delivery aggregators and restaurant owners, each blamed the other for the inflated prices. While restaurant owners claimed that aggregators were responsible for the price inflation, the aggregators insisted they merely displayed the prices set by the restaurants.
For instance, a California Burrito bowl, priced at ₹255 on the restaurant menu, costs ₹295.30 on Zomato while Swiggy showed an additional 15 paise to the already elevated pricing. Such discrepancies are leaving diners frustrated.
Another example involves Big Bowl, which advertises a deal price of ₹179 for a meal for a dish that costs ₹319 at the restaurant. However, customers end up paying ₹263 after adding taxes and delivery charges through Zomato or Swiggy.
“I fall for the discount banners thinking I’m saving money, only to realise that I need to pay almost the full price by the time the final bill shows up,” said Karthika,” a social media professional.
The aggregators deliver Dutch chocolate cake from Mio Amore for a total of ₹310, after listing it for ₹224, while the price at the outlet is ₹265. Ria, an IT employee from Chennai, said the prices don’t even match.
Similarly, The Red Box offers a discount of ₹80 on Ribbon noodles dish over the price of ₹299 shown on Zomato. “After the discount and their platform fee charges, the final charge was ₹259,” said Ajay, a 21-year-old student in Chennai.
He questioned the logic behind the big discount when the actual price at the restaurant was ₹290. “It feels like a scam,” he said.
At Cream Centre in Annanagar East, the Subz Dum Biryani shows a slight price difference between ordering directly from the restaurant and through the Zomato app.
When ordered through Zomato, the price is ₹465.71, which may reflect discounts, special offers, or slight adjustments made by delivery platforms. The physical restaurant price, however, is ₹489, which is the standard charge for dining in or picking up the order directly.
For the Triple Layer Chocolate dessert at Tempt, here’s a noticeable price variation depending on where it is ordered. The physical menu lists the desserts between ₹150 to ₹250, depending on the size, with the smaller portion priced at ₹150 and the regular size at ₹250.
However, on delivery apps, the price is ₹267, which likely includes additional charges such as delivery fees, service charges, or platform-specific adjustments that aren’t accounted for in the physical menu pricing. These platforms modify prices for their commissions, packaging, and delivery logistics.
However, a Zomato spokesperson clarified to South First that the pricing arrangement is determined between the restaurants and the aggregator, “The price difference is a decision made by the restaurants themselves, not by us. We are often misunderstood in this regard.”
Food delivery aggregators often attribute the higher costs to platform fees, service charges, and taxes. However, consumers argue that the charges are disproportionate.
“For someone like me who works 10-12 hours daily, cooking isn’t an option. I order dinner almost daily, and the price difference between what’s on the menu and what I pay is painful,” shared Pooja, a software professional in Chennai. “If I keep doing this, I’ll have no savings left. But what choice do I have?”
Aparna, a working mother, added, “I always check prices before placing an order, but it feels like a losing battle. Even the so-called ‘discounts’ don’t make much difference after the taxes and delivery fees are added.”
Similarly, Ganeshan, a resident from Ashoknagar, expressed his frustration, “The platform fee might be just ₹10 or ₹20, but when combined with the inflated menu prices and delivery charges, it feels like I’m paying for a completely different meal. It’s discouraging to order frequently.”
Meanwhile, restaurants explained their side of the story stating that they set the prices according to their menu and are not responsible for additional charges levied by the platforms.
“We charge customers our menu rates for the food and packaging. Additional charges come from the platform’s end,” said Suraj (name changed), a worker at Subway. “As far as I know, restaurants don’t control or keep track of the commission fees or markups added by the apps.”
Jarshid, from Rawther Biryani, shared a similar sentiment, “Our pricing remains consistent for dine-in and takeaway orders. Once the food is listed on the platform, we don’t really keep track of pricing changes.”
“It’s frustrating when customers blame us for inflated costs, it’s usually an automated cost calculation,” added Shalini (name changed), a freelance artist who used to work as a customer support executive at Swiggy.
Speaking to South First, a Zomato spokesperson said the aggregator does not decide or influence menu items, prices, or descriptions — these are determined solely by the restaurants.
“We are aware that certain restaurants may keep differential pricing across various channels but this is a decision taken by individual restaurants or brands based on their business goals. At our end, we ensure that relevant customer feedback is forwarded to restaurants for appropriate action,” the spokesperson.
“Similarly, packaging charges are set by restaurant partners and are optimised to meet their goals. GST is added to packaging charges as a statutory requirement that is paid to relevant government authorities and is not retained by Zomato. Any discrepancies in packaging fees between orders placed directly with the restaurant and through Zomato reflect the restaurant’s pricing strategies,” the spokesperson added.
The spokesperson said the delivery charges that Zomato collect from customers cover the cost of delivering orders, which is passed on to delivery partners to compensate them for their efforts.
“For Zomato Gold members, the delivery charges are entirely covered by Zomato when our delivery partners deliver orders. In restaurant-owned channels, delivery charges are determined at the restaurant’s discretion,” the spokesperson said.
“Finally, we charge a service fee to cover the costs of technology infrastructure, demand generation, and marketing. This fee is applied to the net value of orders rather than the gross value, making it significantly lower in actual realised value compared to some of our competitors in the market,” the spokesperson claimed.
Swiggy explains that its platform fee includes delivery costs, customer support, and technology improvements. It said discounts are provided at their discretion, often covered by promotions.
In the absence of consistent pricing between restaurants and delivery aggregators, customers have called for greater transparency in pricing strategies.
“Food delivery apps need to be upfront about these markups,” said Harsha, a software engineer from Hyderabad who works in Chennai. “At the very least, there should be a breakdown of where the extra money is going. Right now, it feels like they’re hiding costs to mislead customers.”
“It’s outrageous that a simple cold coffee is marked up by ₹100 just because I’m ordering it through an app,” said Harini V, a marketing executive. “This isn’t just a convenience fee—it feels exploitative.”
Some customers are even turning away from delivery apps altogether. “I’ve started driving to pick up my orders directly from the restaurants,” said Rekha S, a homemaker. “It’s inconvenient, but at least I’m saving money.”
Anjali (name changed), a nurse, summed up the frustration that many people feel, “After a long shift, ordering food should make life easier, but every time I see the bill, I question whether it’s worth it. Cooking seems impossible, but at this rate, neither my time nor my money feels valued.”
(Edited by Muhammed Fazil.)