Logistics platform Shiprocket is testing a direct-ordering service that allows restaurants to bypass the high commission fees charged by major food aggregators. By utilizing its fastrr platform and Shiprocket Quick delivery network, restaurants can retain more revenue per order. The long-term success of this model will depend on whether restaurant brands can attract customers on their own without the massive marketing reach provided by traditional delivery apps.
Shiprocket has launched a pilot program to provide a direct-ordering system for restaurants, aiming to help them reduce dependence on large food delivery aggregators. In the current market, restaurants often pay high commissions to third-party delivery apps, which can sometimes consume over 20% of the total order value. By moving to a direct-ordering model, restaurants hope to improve their profit margins by keeping a larger share of the revenue.
The new system integrates two of Shiprocket’s existing tools. The company’s 'fastrr' platform helps restaurants manage customer data and run loyalty programs, while 'Shiprocket Quick' handles the delivery logistics. By using this service, restaurants do not need to maintain their own fleet of delivery riders. Instead, Shiprocket aggregates riders from third-party services such as Ola, Porter, Borzo, and Shadowfax to fulfill orders.
This strategy is designed to focus on repeat customers. While major food aggregators act as the primary engine for discovering new customers, the fees involved make them less profitable for frequent orders. Shiprocket is betting that restaurants will prefer a direct channel to engage with customers who are already familiar with their brand. Early participants in this pilot include restaurant chains such as Punjabi Angithi and Bikkgane Biryani.
This move brings Shiprocket into direct competition with other players that offer direct-to-consumer software for restaurants, such as DotPe and uEngage. It also competes with the government-backed Open Network for Digital Commerce (ONDC), which was launched to provide a neutral platform for digital transactions across the food industry.
However, the model faces a significant business challenge regarding customer acquisition. Traditional food aggregators provide high visibility to millions of users, a benefit that direct-ordering platforms generally cannot match. For restaurants, shifting to a direct model requires them to invest in their own marketing to drive traffic to their ordering page. If the cost of acquiring these customers through ads or other means becomes too high, it may offset the savings gained from reduced commissions. Investors should monitor how effectively these brands can drive repeat sales and whether this model can scale beyond a few niche chains without the support of a massive aggregator network.