Why Are Bengaluru Restaurants Boycotting Zomato and Swiggy From 15 August?

Bengaluru restaurants may boycott Swiggy and Zomato over high charges as Flipkart enters food delivery.

Restaurant owners in Bengaluru, Karnataka, have threatened to stop accepting orders from Swiggy and Zomato after 15 August if their demands are not met.

The protest is being led by the Bruhat Bengaluru Hotels Association (BBHA), along with other restaurant associations. They say high commissions, discounts, advertising charges and other deductions by food delivery platforms are reducing their profits.

Food delivery apps act as digital middlemen. They list restaurants, collect payments and arrange delivery. In return, they charge restaurants a commission on every order. According to the BBHA, these commissions can range from 8% to 28%.

Restaurant owners say that after commissions, GST, payment charges, discounts, TDS and other deductions, very little money is left. They also claim that discounts and advertising charges are sometimes added without their permission. They want all deductions to be clearly shown and restaurants to have more control over discounts and advertisements.

The associations have also demanded that restaurants should not lose money when customers cancel orders after the food has been prepared. They also want money to be deducted only after customer complaints are properly investigated.

If their demands are not accepted, the associations have warned of a boycott of Swiggy and Zomato and a possible citywide restaurant shutdown after 15 August.

At the same time, Flipkart is reportedly preparing to enter the food delivery market. It is expected to charge restaurants around 10% commission, which would be lower than the rates commonly charged by major food delivery platforms.

Flipkart is expected to use the government-backed Open Network for Digital Commerce (ONDC), which connects buyers, sellers and different apps through one network. This could help Flipkart reduce its costs.

Now, all eyes are on 15 August. If talks fail, thousands of Bengaluru restaurants could boycott Swiggy and Zomato just as Flipkart enters the food delivery market.