Same biryani, different prices: Why food delivery apps charge differently

A Reddit user's recent account of paying 130 rupees more for the same biryani from an identical restaurant across different delivery applications has brought renewed focus to the murky world of food app pricing. The incident underscores a persistent consumer complaint: why must diners pay different amounts for the same meal depending on which platform they use?

Food delivery platforms employ complex algorithms that factor in numerous variables when determining final prices displayed to customers. These include commission structures negotiated individually with restaurants, promotional discounts, surge pricing during peak hours, regional demand patterns, and customer acquisition costs. Many platforms also adjust prices based on user location, ordering history, and perceived willingness to pay.

Restaurants themselves sometimes set different base prices for different platforms to maintain competitive positioning or offset varying commission rates charged by each app. A restaurant paying 25-30 percent commission to one platform may price items higher there to maintain profit margins, while offering lower prices on a competitor charging smaller commissions.

Transparency remains elusive in the sector. While platforms claim price variations reflect genuine cost differences, consumer advocates argue that the lack of clear disclosure about pricing methodology represents a significant gap in fair dealing. Regulatory bodies have begun examining whether such practices constitute hidden pricing or unfair commercial conduct.

As India's online food delivery market continues expanding, pressure is mounting on platforms to provide greater clarity about how final customer prices are calculated and justified.