Bengaluru restaurants threaten Swiggy, Zomato boycott over deductions

The Karnataka Hotel Association says restaurants could stop taking Swiggy and Zomato orders from 15 August unless deductions, discount costs and contract terms become more transparent. Operators claim they retain only 45–50% of order value and are exploring direct ordering and alternatives such as Rapido Ownly.

— Filed Mon, 3 Aug, 2026, 13:32 IST · Source Business Today · Latest · Updated

Karnataka Hotel Association says thousands of Bengaluru restaurants may stop accepting Swiggy and Zomato orders from 15 August unless deductions, discount charges and contract terms are made transparent. Operators are considering Rapido Ownly, direct ordering and potential Flipkart food-delivery alternatives.

Why this matters

The restaurant dispute adds partner pressure as Swiggy scales Toing for value meals, while Jefferies maintains a Buy rating tied to its profitability path and mutual-fund ownership in Swiggy has risen.

Omni-channel is accelerating, up 198000% QoQ.