Bengaluru restaurants threaten Swiggy, Zomato boycott over payout deductions
The Karnataka Hotel Association says restaurants could stop accepting Swiggy and Zomato orders from August 15, alleging opaque fees, discounts and delivery deductions reduce a ₹1,000 order to ₹450-500 in payouts. It says up to 21,000 outlets may participate.
Karnataka Hotel Association threatens a Bengaluru boycott of Swiggy and Zomato from August 15 over alleged opaque deductions, discounts and delivery charges. It says up to 21,000 Swiggy-listed restaurants may participate and is exploring Rapido Ownly, direct ordering and Flipkart.
Why this matters
The boycott threat adds restaurant-partner risk to Swiggy’s recent story: Jefferies called it a high-risk quick-commerce bet, while Q1 FY26 revenue rose 54% to ₹4,961 crore and losses widened to ₹1,197 crore.
Retail-company signals are accelerating, up 259,060% QoQ.