Restaurants all over Bengaluru may stop accepting orders through food delivery platforms like Swiggy and Zomato after August 15 if their long-standing concerns over commissions, discounts and payment charges remain unresolved. Scroll down to read more.
Bengaluru To Stop Taking Food Orders From Swiggy, Zomato
As per a report by Moneycontrol, the Bruhat Bengaluru Hotels Association (BBHA), together with other hospitality bodies, has stated that it will submit a formal representation to the platforms, seeking a written response and corrective action before the deadline.
According to BBHA president S. Subramanya Holla, restaurants are currently paying commissions ranging from 8% to 28%, which he defined as unsustainable. He claimed that such high charges ultimately increase menu prices for customers, as most restaurants do not operate on margins large enough to absorb these costs.
Apart from lower commission rates, restaurant business owners are also demanding greater transparency in settlements and pricing policies. Their major demands include an end to automatic payment refunds following customer complaints, compensation for orders cancelled after food has already been prepared, detailed payment statements explaining every deduction, removal of one-sided contractual clauses, and dedicated relationship managers to solve issues. They have also objected to discounts and advertising campaigns being introduced without their approval.
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BBHA honorary president P. C. Rao said commissions, advertising charges, payment gateway fees and other deductions have greatly reduced restaurant earnings, especially impacting smaller establishments that struggle to track settlement calculations.
BBHA To Ban Swiggy, Zomato, By August 15
Meanwhile, Vidyarthi Bhavan managing partner Arun Adiga said growing platforms such as Rapido’s Ownly, Flipkart’s upcoming food delivery service, and ONDC-based players could provide viable alternatives if competition in the sector increases. Holla noted that Ownly currently operates on a zero-commission model, while Flipkart is expected to charge around 11%, rates he described as more acceptable.
However, he explained that the association is not asking restaurants to immediately abandon Swiggy and Zomato, given their massive customer base. Instead, it wants more competition in the market. Holla also claimed that restaurants sometimes have to increase menu prices by as much as 43% just to recover platform commissions.
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If no agreement is reached by August 15, Bengaluru’s restaurants have warned they will boycott the platforms, a move that could significantly impact online food delivery across the city.
Cover Image Courtesy: Unsplash
FAQs
Who is more cheaper, Swiggy or Zomato?
Neither Swiggy nor Zomato is consistently cheaper than the other.
Which delivery app is best in Bangalore?
The best delivery apps in Bangalore depend on what you need, with Swiggy and Zomato leading for food, and Zepto or Blinkit leading for quick groceries.
Is Swiggy a Bangalore company?
Yes, Swiggy is a Bangalore-based company.
