Bengaluru restaurants threaten Swiggy, Zomato boycott over payout deductions
The Karnataka Hotel Association says restaurants could stop accepting Swiggy and Zomato orders from August 15, alleging opaque fees, discounts and delivery deductions reduce a ₹1,000 order to ₹450-500 in payouts. It says up to 21,000 outlets may participate.
What happened
Karnataka Hotel Association threatens a Bengaluru boycott of Swiggy and Zomato from August 15 over alleged opaque deductions, discounts and delivery charges. It
Key facts
- Restaurants claim they receive 45-50% of order value after deductions
- ₹1,000 daily order value yields approximately ₹450-500 payout
- 21,000 Swiggy-listed hotels/restaurants could join boycott
- Around 30% of food orders are placed online
- Commissions allegedly rose from 5-8% to 15-20%
- August 15 boycott deadline
Why this matters
Alternative ordering, payments and logistics providers have an opening to partner with restaurant associations on lower-fee, transparent marketplace models if the platform standoff escalates.
What to watch
- Number of outlets that actually deactivate Swiggy or Zomato ordering on or after August 15, versus the stated 21,000 potential participants.
- Whether leading Bengaluru restaurant brands, chains, or high-frequency local favorites publicly join the action.
- Changes in average delivery times, restaurant availability, cancellation rates, and consumer-facing discounts in Bengaluru.
- Any written proposal on commission caps, mandatory discount participation, advertising fees, packaging charges, or delivery deductions.
- ONDC order-volume growth, direct-order campaign launches, and merchant migration to alternative delivery channels.
- Statements or intervention from Karnataka state authorities, consumer bodies, or competition regulators.
- Whether the dispute spreads to restaurant associations in Mumbai, Delhi NCR, Hyderabad, Chennai, or Pune.
- Swiggy and Zomato will likely begin closed-door negotiations with Karnataka Hotel Association leaders and high-order-volume restaurant partners before August 15.
- Platforms may selectively deploy lower commissions, promotional credits, delivery-fee support, or enhanced visibility rather than announce broad structural price cuts.
- Restaurant groups will accelerate direct-order links, loyalty programs, QR-code ordering, WhatsApp ordering, and ONDC onboarding to improve their bargaining leverage.
- Both platforms may publish or improve partner payout dashboards to counter the opaque-deduction allegation.
- Large chains and cloud-kitchen operators may receive differentiated commercial terms, widening the economics gap versus independent restaurants.