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ONDC for restaurants in India: what it is, what it costs, and whether you should be on it

ONDC promised to break Zomato and Swiggy's duopoly. In 2026, the reality is more nuanced. Here is an operator's honest assessment of ONDC order volumes, commission rates, and operational requirements.

AM
Suraj KumarCo-founder, Indostra
18 January 2026·9 min read

ONDC — the Open Network for Digital Commerce — went live for food in 2022 with the explicit goal of giving independent restaurants a commission-free alternative to Zomato and Swiggy. In 2026, it has real traction in a handful of cities and is still nascent in most. Here is where it actually stands.

What is ONDC?

ONDC is an interoperable protocol, not a platform. Restaurants list on a 'seller app' (e.g., Mystore, Paytm, or a POS provider like Indostra that supports ONDC). Buyers can order from any 'buyer app' — Paytm, ONDC-enabled delivery apps, or even bank apps. The protocol routes the order between them. No single aggregator controls the relationship.

Volume reality in 2026

ONDC food order volumes are still 5–15% of Zomato/Swiggy volumes in most markets. Bengaluru and Delhi are the strongest cities. Most restaurants on ONDC get 8–40 orders per day from the network, versus 80–200 from Zomato. The growth trajectory is positive but the absolute volumes mean ONDC is a supplement, not a replacement, for most operators today.

3–8%
Typical effective commission on ONDC
18–28%
Typical effective commission on Zomato/Swiggy
5–15%
ONDC volume vs aggregators in most cities

Commission comparison

ONDC seller app fees are typically 3–8% — substantially lower than the 18–28% on Zomato and Swiggy. The buyer app may also charge a small fee (1–3%) that is visible to the consumer, not the restaurant. The all-in commission is still materially lower than aggregators. At ₹500 AOV, the difference is ₹75–125 per order — meaningful at volume.

Operational requirements

ONDC requires: your restaurant to be onboarded on a certified seller app, your menu loaded in ONDC format (your POS provider may handle this), and a delivery mechanism. ONDC does not have its own delivery fleet — you need to integrate with a logistics provider (Dunzo, Porter, Shadowfax, or your own delivery). This delivery integration is the biggest operational overhead for new joiners.

Join ONDC through your POS if you can

Indostra's ONDC integration syncs your menu, receives orders directly into the KOT flow, and connects to logistics — no separate tablet, no manual re-entry.

Should you join ONDC?

Yes, if your POS handles the integration without adding a new tablet or manual workflow. The incremental revenue at lower commission is real, even at modest volumes. No, if onboarding requires a separate device, manual order entry, and a separate delivery fleet you do not have. The margin savings do not compensate for the operational friction in that scenario.

#ONDC#Delivery#India#Aggregator
AM
Suraj Kumar
Co-founder, Indostra

10 years building POS and payments for Indian restaurants. Previously at Razorpay & Petpooja.