Bengaluru restaurants set Aug 15 deadline to quit Swiggy, Zomato over commissions, discounts

In a bold move, Bengaluru's restaurant community has announced a collective decision to potentially cut ties with major food delivery platforms Swiggy and Zomato by August 15. This decision comes in response to growing dissatisfaction with the high commissions and mandatory discounts imposed by these platforms, which restaurant owners argue are unsustainable for their businesses. The move signals a significant shift in the dynamics between eateries and delivery services, as the former seek to regain control over their pricing and profits. Restaurant owners have expressed frustration over the lack of transparency and negotiation flexibility with Swiggy and Zomato. Many claim the high commission rates, sometimes reaching up to 30%, coupled with compulsory discounts, have eroded their profit margins. A collective exit from these platforms could force a reevaluation of current business models, potentially paving the way for more equitable partnerships or alternative delivery solutions tailored to the needs of the local food industry. As the August 15 deadline approaches, consumers and industry stakeholders are watching closely. The potential departure of numerous restaurants from Swiggy and Zomato could disrupt Bengaluru’s vibrant food delivery ecosystem, prompting customers to explore direct ordering options or new platforms. While the outcome remains uncertain, this standoff highlights growing tensions in the rapidly evolving food delivery landscape, underscoring the need for more balanced and sustainable practices.

— Authored by Next24 Live