Bengaluru Restaurants Plan Boycott of Swiggy Amid Commission Disputes

In a significant move, the association representing restaurant owners in Bengaluru has announced plans to boycott the popular online food delivery service Swiggy. This decision comes in response to ongoing frustrations regarding the high commissions and various charges imposed by the platform. The restaurant owners have expressed their dissatisfaction with the current partnership dynamics, emphasizing the need for a more equitable and transparent relationship with Swiggy. They are particularly concerned about the practice of offering discounts to customers without prior approval from the restaurants, which they believe undermines their business interests. Furthermore, they are demanding clearer communication regarding advertising fees and payment processing costs, which they argue have not been adequately disclosed.

The restaurant owners have issued a stern warning to Swiggy's management, stating that if their concerns are not addressed by August 15, they will initiate a complete shutdown of their establishments across the city. This drastic measure reflects the gravity of their situation, as they claim that the financial implications of the current commission structure are unsustainable. For instance, they report that after generating revenue of approximately Rs 1 lakh, they are left with only around Rs 40,000 due to the deductions taken by Swiggy for commissions, discounts, and other fees. The association has outlined several key demands that they believe are essential for a fair partnership, including the cessation of automatic deductions following customer complaints and ensuring that restaurants do not incur losses from order cancellations that occur after food preparation.