Everything You Need to Know About Zero Commission ONDC Food Delivery

The Indian eCommerce market is set to grow exponentially, with projections indicating it will reach 11.4% of the total retail market by 2026. The Open Network for Digital Commerce (ONDC) is a revolutionary initiative by the Indian government to improve accessibility for small businesses and sellers across rural and urban areas. By 2024, ONDC aims to onboard 30 million sellers through multiple seller-side platforms, creating a thriving digital marketplace for all. As part of this initiative, ONDC is making significant waves in the food delivery industry through its zero-commission structure, a model that benefits both consumers and businesses.

If you’ve heard the buzz about ONDC food delivery, you may be curious about how it works and why it is gaining momentum so quickly. In this blog, we will explore ONDC’s zero-commission food delivery, its benefits, and how it compares to major food delivery platforms. Whether you’re a restaurant owner or a consumer looking for affordable food options, here is everything you need to know.

What is ONDC Food Delivery?

The ONDC food delivery system is a part of the government-backed initiative that allows restaurants to connect directly with customers through various buyer apps. Unlike traditional food delivery platforms that charge hefty commissions ranging from 18% to 25%, ONDC enables sellers to operate without any commission fees. This model provides an affordable and transparent solution for food businesses and consumers alike.

How does it work?

ONDC integrates multiple buyer and seller apps under one network. Customers can place their orders via buyer apps like Paytm, Magicpin, and Meesho, while sellers manage their listings and orders through seller apps. Delivery is handled by third-party logistics providers like Dunzo, Shadowfax, and Loadshare, ensuring smooth operations.

By eliminating high commissions, food businesses can now focus on offering better pricing and quality, giving ONDC food delivery a significant edge over competitors.

Why Zero-Commission Food Delivery is a Game Changer

Traditional food delivery apps charge restaurants substantial commission fees, which often lead to higher prices for customers. In contrast, ONDC food delivery operates on a zero-commission structure, providing the following advantages:

1. Lower Prices for Customers

Restaurants can offer menu items at reduced prices since they are not burdened by high commission charges. A recent report highlighted that menu items on ONDC platforms such as Paytm and Magicpin are available at 30% to 80% lower prices compared to traditional food delivery apps

2. Empowering Small Businesses

Smaller and independent food outlets often struggle to compete with larger chains on mainstream food delivery apps. ONDC provides a level playing field for all sellers, enabling them to reach more customers without additional costs.

3. Higher Profit Margins for Restaurants

Zero-commission food delivery allows restaurants to retain a larger share of their revenue. This enables them to reinvest in their businesses, improve quality, and expand their operations.

4. Transparent Operations

ONDC’s open network ensures transparency and fair pricing for both sellers and consumers, eliminating hidden fees and unnecessary markups.

With such benefits, ONDC food delivery is quickly emerging as a disruptor in the food delivery market.

WAAYU: A Pioneer in Zero-Commission Food Delivery

WAAYU, India’s first zero-commission food delivery app, is a prime example of how businesses are leveraging the ONDC food delivery app model. Launched in May 2023, WAAYU has onboarded over 3,000 restaurants across cities like Mumbai, Pune, Jaipur, Bengaluru, and Hyderabad.

Key Highlights of WAAYU:

• Zero Commission: WAAYU operates without charging commissions, helping restaurants save on costs and offer better prices to customers.
• ONDC Integration: WAAYU recently joined ONDC as a seller marketplace and is actively partnering with buyer apps like TATA Neu and OLA to increase order volumes.
• Boost to Restaurants: By being part of the ONDC food delivery network, WAAYU enables restaurants to reach more customers and enhance their profitability.

To learn more about WAAYU’s launch in Hyderabad read here.

How to Use ONDC Food Delivery Apps

Getting started with ONDC food delivery is simple. Here’s a quick guide for customers and businesses:

For Customers:

1. Download a buyer app such as Paytm, PhonePe’s Pincode, or Magicpin.
2. Browse the food delivery section and select your favourite restaurant.
3. Place your order and enjoy discounted prices!

For Restaurants:

1. Register as a seller on ONDC through seller apps like Bizom or WAAYU.
2. List your menu and pricing.
3. Partner with third-party delivery services like Dunzo or Shadowfax for smooth deliveries.

For a detailed guide on onboarding your restaurant to ONDC food apps, check this out.

ONDC Food Delivery vs Traditional Platforms

Here’s how ONDC food delivery stands apart from traditional food delivery platforms:

This comparison highlights how ONDC food delivery is not only more cost-effective but also more inclusive for small businesses.

ONDC Food Delivery: Future Outlook

According to a report by McKinsey, ONDC has the potential to increase India’s digital consumption fivefold, reaching $340 billion by 2030. As more restaurants and consumers embrace the ONDC food delivery app, the platform will play a pivotal role in shaping the future of India’s food delivery sector.

The rise of zero-commission platforms like WAAYU, coupled with partnerships across buyer and seller apps, demonstrates that ONDC is here to stay. Its focus on inclusivity, affordability, and transparency makes it a game-changing initiative for India’s growing digital economy.

To understand how ONDC drives small business market growth, visit here.

Conclusion

ONDC food delivery is transforming the food delivery landscape by offering a zero-commission model that benefits both restaurants and customers. Platforms like WAAYU are leading the way, enabling small and large food outlets to deliver quality meals at affordable prices.

For customers, it means lower costs without compromising on quality. For businesses, it means higher profitability and greater opportunities to reach more consumers.

With ONDC’s ambitious vision and growing network, the future of food delivery in India looks brighter than ever. If you are a restaurant owner or a food enthusiast, now is the time to explore the benefits of the ONDC food delivery app.

FAQs

1. What is ONDC food delivery and how is it different from traditional platforms?

ONDC food delivery allows restaurants to sell food directly to customers through apps like Paytm and Magicpin without charging commission fees. Unlike traditional platforms, ONDC uses third-party delivery services, making food prices lower and helping restaurants save on costs.

2. How does the zero-commission model benefit restaurants?

The zero-commission model eliminates the 18–25% commission charged by traditional platforms. This helps restaurants increase their profits, lower menu prices for customers, and generate more orders by being part of the ONDC network.

3. Which apps can I use to order food on ONDC?

Customers can place orders through buyer apps like Paytm, PhonePe’s Pincode, Meesho, Magicpin, and Mystore. These apps provide a seamless experience for ordering food at discounted prices.

4. How can restaurants join the ONDC food delivery network?

Restaurants can onboard through seller apps like WAAYU, Digiit, and Mystore. After registration, they can list their menus, connect with third-party delivery services, and start receiving orders from ONDC buyer apps.

5. Is ONDC food delivery available across India?

Yes, ONDC is operational in 236 cities, including major hubs like Mumbai, Pune, Bengaluru, Chennai, and Hyderabad. It continues to expand rapidly, offering businesses and customers more options for affordable and transparent food delivery.