Why is online food so expensive? CCI gave a clean chit to Zomato on what basis? Losing customers

Nowadays, most people order food through online food delivery apps, which are often much more expensive than restaurants. If you have ever noticed while ordering food online that food is more expensive on apps and cheaper in restaurants, then this news is very important for you.
A consumer filed a complaint with the Competition Commission of India (CCI) against Zomato (Eternal Limited) regarding this issue. However, after investigating the matter, the CCI granted relief to the company and dismissed the complaint. CCI said that online food delivery and direct restaurant purchasing are two different business models, and therefore, prices cannot be directly compared.

What was the whole matter?

A customer complained that food ordered online was priced much higher than at a restaurant. He said the price of the meal at the restaurant was 105, but the price of the same meal was shown as 198 on the restaurant’s app. The customer alleged that Zomato was overcharging customers due to increase in menu prices, platform fees, delivery charges and taxes. He also said that Zomato’s commission forces restaurants to increase food prices on its app.

Why is online food expensive?

Online orders include the cost of delivery, platform and other services. Due to the convenience of ordering food at home, the cost is higher. Taxes, delivery charges and platform fees also add to the total bill. Food delivery companies take commission from restaurants, which the restaurants often compensate by increasing prices through their apps. On what basis did CCI give a clean chit?
CCI said that customers willingly pay high prices for their convenience. All information like platform fees, delivery charges and taxes are shown to the customer before payment. The customer is given the option to cancel the order till final payment. During the investigation, CCI found no evidence that Zomato took undue advantage of its app.