Bengaluru Hotel Association Demands Fair Deal From Swiggy by August 15

Restaurant owners in Bengaluru have threatened to boycott online food delivery platform Swiggy from August 15 if their concerns over commissions, deductions and business practices are not addressed. The Bengaluru Hotel Association has alleged that excessive commissions, mandatory discounts and various service-related deductions imposed by the platform are significantly reducing restaurant earnings. The association has called for immediate discussions with Swiggy, warning that members may withdraw from the platform if no resolution is reached before the deadline.

According to the association, restaurant partners are left with only about ₹40,000 after generating business worth ₹1 lakh, with the remaining amount deducted through commissions, discounts, advertisement charges, payment gateway fees and other levies. Representatives claim these deductions have made it increasingly difficult for many establishments to operate profitably despite receiving a high volume of online orders.

Restaurant owners have outlined several demands aimed at making the partnership more transparent and equitable. They have requested that Swiggy stop offering discounts without the consent of restaurant partners, provide detailed settlement reports explaining every deduction, and ensure greater transparency regarding advertising charges and payment gateway fees. The association also wants an end to what it describes as one-sided contractual terms.

Also Read: Inside Oman's Hormuz Proposal To Iran Amid Gulf-Backed Maritime Tensions

Among the other demands, restaurant owners have asked that funds should not be automatically deducted immediately after customer complaints without proper verification. They have also insisted that restaurants should not bear financial losses when customers cancel orders after food has already been prepared. In addition, the association has sought the appointment of a dedicated relationship manager for every restaurant to improve communication and resolve operational issues more efficiently.

The Bengaluru Hotel Association has urged Swiggy's management to hold discussions with representatives of the restaurant industry to resolve the dispute. Association office-bearers said that if no satisfactory response is received by August 15, participating restaurants will stop accepting orders through the platform and may also organise a broader citywide shutdown as part of their protest.

Responding to the situation, Swiggy had not publicly announced any agreement with the association at the time of the report. The dispute comes amid growing scrutiny of commission structures and platform policies in India's online food delivery sector, where restaurants have increasingly sought greater transparency and a more balanced revenue-sharing model while delivery platforms continue to expand their services and customer base.

Also Read: Bombay HC Sets Aside Externment of Two SDPI Functionaries