How to review a Swiggy or Zomato contract before you sign
Before signing a Swiggy or Zomato agreement, check four clauses: the commission rate (commonly 18–30% plus taxes), auto-renewal and its notice period, any exclusivity or discount-funding obligations, and the payout cycle. These terms, not the headline sign-up, determine whether delivery is profitable.
What commission and charges am I actually agreeing to?
The commission is the single biggest cost in an aggregator contract and commonly runs 18–30% of order value plus GST, payment-gateway fees and, sometimes, ad or 'visibility' charges. Read the schedule of fees, not just the headline rate.
Model your margin at the real all-in take rate for a typical order. A 25% commission plus 2–3% gateway and packaging can turn a nominally profitable dish into a loss on delivery.
Does the contract auto-renew, and how do I exit?
Most aggregator agreements auto-renew unless you give written notice within a defined window — often 30 days before the renewal date. Miss the window and you are locked in for another term on the same commission.
Diarise the renewal date and the notice deadline the day you sign. This is exactly the kind of clause EatSafe Legal's AI flags and reminds you about before the window closes.
Is there an exclusivity or discount-funding obligation?
Watch for clauses that require exclusivity (you can't list on rival platforms), mandate participation in platform-funded discounts, or let the platform change commission or run promotions using your margin. These quietly shift cost and control to the aggregator.
Exclusivity in particular should be a deliberate decision, not a default you signed without noticing.
When and how do I get paid?
Check the settlement cycle (commonly 7–15 days), what deductions are netted off before payout, chargeback and refund liability, and the dispute process for missing or short payments. Payment terms decide your working capital.
Keep every monthly statement; reconciling payouts against orders is where restaurants most often find silent deductions.
Frequently asked questions
Can I negotiate the commission with Swiggy or Zomato?
Rates are often standardised by segment, but negotiation is possible for volume, and you can decline optional ad/visibility spend. Always confirm the all-in take rate in writing.
What is the most overlooked clause in these contracts?
Auto-renewal with a short notice window. Restaurants routinely miss the exit window and are locked into another term at the same commission.
Should I sign an exclusivity clause?
Rarely by default. Exclusivity removes your leverage and your other sales channel; treat it as a deliberate, compensated decision.
Are Swiggy and Zomato commissions the same?
They are broadly comparable and both segment rates by city, cuisine and order value, but the exact percentage, ad model and payout cycle differ per contract — compare your two actual agreements, not the headline rates.
Who is liable for a customer refund on a delivery order?
It depends on the clause. Many contracts let the platform deduct refunds and chargebacks from your payout, sometimes even for delivery failures outside your control — check the refund and deduction terms before signing.
Can the platform change the commission after I sign?
Some contracts reserve the right to revise fees or run margin-funded promotions on notice. Look for a clause requiring your consent to fee changes, and keep the notice period for exiting in mind.
This guide is general information for Indian restaurants, not legal advice. Rules change and specifics vary by state and situation — confirm with a qualified professional. EatSafe Legal connects you to verified CAs and lawyers when you need one.
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