Online Food Delivery Charges: Nowadays, many people order food through online food delivery apps, the price of which is much more expensive than that of restaurants. If you too have noticed while ordering food online that the food is expensive on the app and cheaper in the restaurant, then this news is very important for you.

Regarding this issue, a customer filed a complaint against Zomato (Eternal Ltd.) with the Competition Commission of India (CCI). However, after investigating the matter, CCI dismissed the complaint, giving relief to the company. CCI says that online food delivery and purchasing food directly from the restaurant are two different business models. In such a situation, direct comparison of the prices of both cannot be done.

What was the whole matter?

A customer complained that the price of food ordered online was much higher than that at the restaurant. He told that the price of a meal in the restaurant was Rs 105, whereas on the same restaurant app, the price of that meal was shown to him as Rs 198. The customer alleged that due to increased menu price, platform fee, delivery charge and tax, they are charging more money from the customer through their app. He also said that due to Zomato’s commission, restaurants have to increase the prices of food on their app.

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Why is online food expensive?

• Online ordering includes the cost of other services like delivery, platform etc.
• Due to the convenience of ordering food at home, one has to pay a higher price.
• Taxes, delivery charges and platform fees also increase the total bill.
• Food delivery companies take commission from restaurants, which the restaurants sometimes compensate by increasing the prices through their apps.

On what basis did CCI give clean chit?

• CCI said that customers pay more than they want for their convenience.
• All information like platform fees, delivery charges and taxes are shown to the customer before payment.
• The customer is given the option to cancel the order till the last payment.
• During the investigation, CCI did not find any evidence to prove that Zomato had taken unfair advantage of its app.

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