Concerns are growing among home-based food businesses over the commission structure of foodpanda, with reports indicating that some home chefs may pay up to 30% of their earnings in commissions and related service charges. The deductions can vary depending on the seller’s agreement, location, and additional platform fees.
For many small food entrepreneurs, these charges have become a major challenge. If a home chef sells food worth Rs100, nearly Rs30 may go toward commissions and other charges, leaving only around Rs70 before accounting for ingredients, packaging, delivery-related expenses, and utility costs.
Home chefs often rely on food delivery platforms to reach a larger customer base without investing heavily in marketing or physical outlets. However, many argue that high commissions are reducing profit margins and making it difficult to grow their businesses. Some entrepreneurs say they are forced to increase menu prices to offset platform charges, which can affect customer demand.
Small businesses are already dealing with higher prices of raw materials, fuel, and packaging. Industry observers believe that finding a balance between platform fees and seller profitability will be important to support the growing home-based food business sector in the country.
