Super App Monopoly: Food Delivery Platforms' Commission Forces Restaurants to Raise Prices by 30%"

Jul 4, 2025 By

The rise of super apps has revolutionized the way consumers interact with businesses, particularly in the food delivery sector. However, this convenience comes at a steep cost for restaurants, many of which are now grappling with exorbitant commission fees imposed by dominant platforms. As these fees continue to climb, eateries are left with little choice but to pass the burden onto customers, resulting in menu price hikes of up to 30% in some cases. The growing tension between restaurants and delivery giants underscores a deeper imbalance in the digital marketplace—one where platform dominance threatens the survival of small and mid-sized food businesses.

At the heart of the issue lies the aggressive expansion of super apps, which have consolidated multiple services—ride-hailing, payments, and food delivery—under one umbrella. These tech behemoths leverage their vast user bases to exert unprecedented control over the restaurant industry. With delivery platforms accounting for a significant portion of sales, many eateries find themselves trapped in a Faustian bargain: accept punishing commission rates (often ranging from 20% to 30%) or risk vanishing from consumers' digital radar. The result? A distorted economy where algorithms dictate profitability and independent operators struggle to keep their doors open.

Interviews with restaurant owners across major cities reveal a troubling pattern. "We used to absorb the 15% commission by cutting operational costs," says Michael Tan, who runs a noodle bar in Singapore. "But when fees jumped to 28% during the pandemic, we had to raise prices just to break even." Similar stories echo from Bangkok to Berlin, where culinary businesses report shrinking margins despite increased order volumes. The platforms argue that their fees reflect the value of customer access and logistics infrastructure. Yet critics counter that such claims ignore the monopolistic pressures forcing vendors into unfavorable terms.

Consumer behavior further complicates the equation. The convenience of app-based ordering has conditioned diners to expect restaurant-quality meals at home—a service that requires substantial behind-the-scenes labor. Delivery platforms initially subsidized this expectation through investor-funded discounts, creating an artificial low-price environment. Now, as these companies prioritize profitability, the true cost is emerging. Menu items that once cost $12 in-store now carry $16 price tags on apps, with restaurants taking home less money per order than they would from walk-in customers.

Regulators are beginning to scrutinize the super app ecosystem. Several countries have introduced temporary commission caps during COVID-19 lockdowns, while India recently classified food delivery workers as formal employees—a move that could force platforms to reconsider their cost structures. However, lasting solutions remain elusive. Some restaurants attempt to bypass platforms by building direct ordering systems, but most lack the technical resources to compete with billion-dollar apps' marketing reach. Others adopt hybrid models, offering app-exclusive menu items at higher prices to offset commissions.

The long-term implications extend beyond restaurant economics. As delivery platforms consolidate their gatekeeper position, they gain power to influence everything from ingredient supply chains to urban traffic patterns. Their algorithms prioritize partners who can afford to pay for visibility, creating a self-reinforcing cycle that sidelines smaller players. Meanwhile, the environmental toll of single-order deliveries adds another layer to the sustainability crisis. What began as a digital convenience now threatens to reshape entire cities' food cultures—with local flavors increasingly homogenized to suit algorithm-friendly, delivery-optimized menus.

Perhaps the most insidious effect is the psychological shift among consumers. Younger demographics, especially Gen Z, now perceive third-party delivery as the default way to experience restaurant food. This normalization of intermediary services risks eroding the communal aspects of dining—the serendipity of discovering neighborhood gems, the interpersonal exchanges that define food culture. When every transaction filters through a corporate platform, the relationship between chefs and eaters becomes mediated by dashboards and ratings systems.

Some industry watchers predict an impending breaking point. As restaurant closures accelerate and menu prices reach consumer tolerance thresholds, the current model may prove unsustainable. Alternative platforms experimenting with lower commissions or cooperative ownership structures have emerged, though none have yet challenged the super apps' dominance. For now, the delicate dance continues: restaurants raise prices to survive, platforms take their cut, and customers pay the premium—all while the algorithms decide who gets to eat and who gets eaten in the digital food chain.

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