Bengaluru Hotels Association looks to bust Swiggy-Zomato duopoly by joining ONDC, ropes in GrowthFalcons

Following in the footsteps of auto drivers, tech capital Bengaluru’s hotels association is all set to join the Open Network for Digital Commerce (ONDC) to challenge the dominance of Swiggy and Zomato in the online food delivery segment.

Moneycontrol has learnt that Bruhath Bangalore Hotels Association (BBHA) has partnered with GrowthFalcons, a seller-side platform on ONDC, to onboard its restaurants and hotels onto the government-backed network. BBHA has more than 2,000 hotels and restaurants as members in Bengaluru.

"We've recently partnered with GrowthFalcons, and an MoU was signed. We hope that it will pick up pace soon. We expect more customers to use it since the rates will be cheaper than Swiggy and Zomato." PC Rao, President of BBHA told Moneycontrol.

Also, read: ONDC looks cheaper than Zomato and Swiggy: Decoding the discount war

Arun Adiga, owner of Bengaluru's Vidyarthi Bhavan and a BBHA member told Moneycontrol, “The initial testing is under progress to iron out teething issues, and a few restaurants, including Vidyarthi Bhavan, have already joined ONDC through GrowthFalcons," he said.

He said BBHA facilitated discussions with GrowthFalcons, negotiating terms to benefit association members. "They agreed to offer special benefits to members. More restaurants will soon join. We're hopeful that ONDC will grow gradually. Initially, they approached big restaurants to onboard and test in phases, targeting around 100 restaurants first."

"Our partnership with BBHA is a testament to the trust placed in us and ONDC in our mission to democratize the food and beverage restaurant sector. This collaboration enables us to onboard over 2,000 restaurants. Renowned brands such as Vidyarthi Bhavan, Priyadarshini, Kamat, Swathi Group, and others have exclusively joined ONDC through GrowthFalcons," said Girish Pai, founder of GrowthFalcons.

Also, read: ONDC starts pilot to onboard street food vendors in Delhi, Lucknow

ONDC offers lower costs for restaurants for online delivery compared to Swiggy and Zomato, with an eight percent commission on the cart value (food value + logistics + packaging) plus taxes (18 percent GST on the commission and one percent TDS on food value).

"At the end of the day, it's not just about price; visibility is crucial. Right now, small cloud kitchens are relying entirely on Swiggy and Zomato. ONDC provides a new channel for additional orders, potentially improving both top line and bottom line,” a source said.

Modus operandi

Adiga explained that GrowthFalcons will serve as a bridge, connecting BBHA's restaurants to the ONDC network and increasing their visibility to potential buyers. "For instance, GrowthFalcons has a tie-up with Ola. On Ola's app, customers can now discover and order food from restaurants, including Vidyarthi Bhavan.”

Also, read: Ola to enter grocery delivery via ONDC, captures 30% of food orders on network

"A buyer will be able to place an order or add items to their cart on Ola and make the payment, while GrowthFalcons manages the backend operations, coordinating with delivery partners like Porter, Shadowfax, or Dunzo to ensure timely delivery. This seamless process ensures that food orders reach customers efficiently," Adiga said.

He described ONDC as a 'government-initiated framework' similar to the UPI (Unified Payments Interface), aimed at democratising access and visibility in sectors dominated by platforms such as Swiggy and Zomato.

"The partnership between BBHA and GrowthFalcons is a testament to how Seller Network Partners can revolutionize the F&B industry as part of ONDC network. By enabling the seamless onboarding of restaurants, whether small local eateries or large dining establishments, onto the ONDC network, they are paving the way for unprecedented visibility and growth," said T Koshy, CEO and managing director of ONDC.

"This collaboration will empower F&B businesses to reach a broader customer base through various buyer apps, driving incremental orders and enhancing profitability with significantly lower take rates. It's not just about increased orders; it's about transforming the business landscape for our restaurant partners and ensuring sustainable, long-term growth," he added.

Reduced commission

Adiga pointed out that ONDC offers lower commission rates compared to traditional aggregators like Swiggy and Zomato, benefiting both restaurants and consumers by reducing menu prices.

"GrowthFalcons charges less than 10 percent commission, whereas Swiggy and Zomato charge up to 25-35 percent, depending on the order value and business volume. This competitive pricing benefits restaurants and consumers alike," he explained.

Also, read: Surprised that ONDC has been tried by 60% users to order food: BofA

He said that food menu prices on Swiggy and Zomato are often at least 30 percent higher than the actual restaurant menu prices. "This burden ultimately falls on the end user. With the ONDC network, it's a win-win situation for both restaurant owners and customers because reduced commissions and pricing can also come down. Restaurants will have more options outside the monopoly/duopoly of Swiggy and Zomato, where hidden charges or fixed commission rates are not imposed."

Challenges

Adiga admitted operational challenges, particularly in ensuring end-to-end delivery coordination. "Timely and reliable deliveries are crucial for customer satisfaction. Unlike Swiggy and Zomato, which have their delivery executives, ONDC platforms coordinate with external delivery partners. Ensuring accountability throughout the process remains a major challenge," Adiga said.

“ Unlike other products where delays might be tolerated, in this case, even a short delay can render food unfit for consumption within an hour. ONDC needs to ensure seamless coordination with delivery partners, not only for placing orders but also for prompt pick-up and delivery as well as payments. If, for whatever reason an order isn't delivered, whom should the customer contact, and how will it be addressed? These are some of the challenges we foresee.”.

Also, read: Bengaluru drivers turn to Telegram, WhatsApp and zero-commission apps to beat Ola-Uber duopoly