More than half of food app users say they pay higher prices than at restaurants: LocalCircles survey

More than half of Indian consumers who order food through online platforms believe they are paying more than what restaurants charge for dine-in or takeaway, according to a new nationwide survey by community platform LocalCircles.

The findings add to growing scrutiny of food delivery aggregators over pricing transparency, service quality and consumer protection.

The survey, which drew over 79,000 responses from consumers across 359 districts, found that 55% of respondents said food prices listed on aggregator apps were higher than restaurant prices. In addition, three out of four app users flagged pricing as a concern, citing a combination of higher menu prices, taxes, platform fees and delivery charges. Only 26% said they had no complaints on pricing.

"Apart from workers, consumers increasingly complain that food delivery apps inflate prices because high commissions (20–30 %+) charged to restaurants are reflected in menu prices seen online, with savings not passed back to customers," the report said. 

The dissatisfaction is not limited to costs. Over 95% of respondents reported at least one issue related to food quality or packaging. Poor handling during delivery remains a major pain point, with 56% saying they had received damaged, spilled or distorted food more than once in the past year. Another 27% raised concerns around unsafe food packaging, while 25% complained about stale food or compromised quality, the survey showed.

Furthermore, transparency emerged as a key consumer demand. An overwhelming 87% of respondents said food aggregator platforms should be required to display both dine-in or pickup prices and online delivery prices for each restaurant. Consumers argue that clearer price comparisons would help them make informed choices and reduce the perception of overcharging.

Even discounts and promotions offered only limited relief. While one-third of respondents said they were able to avail restaurant or bank-linked discounts on most orders, nearly 45% said they had not benefited much from discounts this year. At the same time, 37% reported instances where the total amount charged by the platform was lower than the restaurant bill included with the food, suggesting inconsistencies in pricing outcomes.

The survey findings come amid broader concerns around the food delivery ecosystem, including frequent consumer grievances and regulatory scrutiny. More than 7,000 complaints against food delivery apps were registered in 2024-25, while the Food Safety and Standards Authority of India (FSSAI) received over 21,000 complaints related to online food sales over the last five fiscal years, as informed to Parliament earlier. At the same time, unions such as the Gig and Platform Services Workers Union (GIPSWU), Indian Federation of App-BasedTransport Workers (IFAT), and others mobilised thousands in protests, submitted detailed demands to the Labour Ministry, and highlighted systemic exclusions from labour rights. However, the immediate impact of these strikes has been mixed as the impact of the strike on overall platform performance was non-material.

LocalCircles noted that the rapid expansion of online food delivery beyond metros has not been matched by improvements in service standards. India’s online food delivery market was valued at about $31.8 billion in 2024 and is projected to grow sharply by 2030. However, the survey suggests that unresolved issues around pricing transparency, food safety and delivery quality could weigh on consumer trust as the sector scales further.