Swiggy meets Bengaluru hoteliers as Zomato tightens approval for restaurant-funded discounts

Swiggy leadership is set to meet Bengaluru hotel and restaurant partners over alleged unauthorised discounts and payout deductions. Zomato has introduced OTP approval for restaurant-funded offers and says it will review past deductions. BHA members have flagged a potential Swiggy order stoppage from Aug. 15 if issues persist.

— Source publishedTue, 4 Aug, 2026, 10:00 IST·First seen Tue, 4 Aug, 2026, 10:06 IST·Source ET Hospitality

What happened

Swiggy leaders will meet Bengaluru hoteliers over alleged unauthorised discounts and payout deductions. Zomato introduced OTP approval for restaurant-funded

Key facts

  • Five or six senior Zomato executives
  • Aug 15

Why this matters

The dispute creates an opening for restaurant-tech, payments and direct-ordering partnerships that give operators more transparent promotion control and settlement visibility.

What to watch

  • Whether Swiggy publicly commits to explicit pre-approval for restaurant-funded discounts and a timeline for reviewing historical deductions.
  • Confirmation, scale and duration of any BHA-linked order stoppage or delisting action around Aug. 15.
  • Evidence of restaurant traffic, order-share or app-ranking shifts in Bengaluru between Swiggy and Zomato.
  • The number and value of disputed settlements refunded, credited or placed under review by either platform.
  • Whether NRAI, other city hotel associations or major restaurant chains adopt similar demands nationally.
  • Changes in platform-funded discounting, delivery fees, commission structures or advertising requirements that indicate margin recapture.
  • Any regulatory or competition-policy inquiry into platform contracts, settlement practices or unilateral promotional deductions.
  • Swiggy is likely to meet Bengaluru hotel and restaurant representatives, audit disputed discount deductions and offer a grievance-resolution or reconciliation process.
  • Zomato is likely to market OTP approval and past-deduction reviews as a merchant-trust differentiator, particularly in Bengaluru.
  • Restaurant associations may collect transaction-level evidence, coordinate member demands and seek written commitments on discount consent, settlement transparency and reimbursement timelines.
  • Both platforms may shift promotions toward platform-funded offers, loyalty subscriptions, bank-funded campaigns and selective customer cohorts rather than broad restaurant-funded discounts.
  • Large chain restaurants may demand bespoke contracts and tighter campaign controls, while smaller independent outlets gain leverage through collective association representation.