Flipkart may cap restaurant fees, ad spend at 15-20%

Flipkart is working on a cap on the costs restaurants incur on its upcoming food delivery platform — at 15-20% of order value covering commission as well as any advertising spend — according to people aware of the matter.

The ceiling would be a first in India’s food delivery market. Zomato and Swiggy charge restaurants commissions of 16-30% of order value, with advertising and promotion fees on top and no stated limit on the total outgo. Advertising is among the fastest-growing and highest-margin revenue streams for the incumbents.