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Business

Hotels In Bengaluru Warn To Boycott Swiggy From August 15 Over Payment Disputes

hellohimachalse@gmail.com 30 Jul 2026 30 Jul 2026

Another blow for the food delivery platform Swiggy in Bengaluru as the Bengaluru hotel associations have threatened to halt orders from 15, August through Swiggy if their longstanding issues are not addressed. They raised questions on the transparency in payouts.

The association mentioned in a press release, “Failing this, all our associations in Bengaluru have unanimously decided to suspend all business with Swiggy from August 15.”

The Bruhat Bengaluru Hotels Association (BBHA) and other restaurant associations have given the food delivery platforms a time till August 15 to respond to their concerns. That’s because of high commission charges, platform-funded discounts, advertising expenses and other deductions, the associations allege, which have severely diminished restaurant profits.

The associations report that the costs of the commissions the platforms charge range from 8 per cent to 28 per cent, apart from extra charges for advertisements, payment gateways and app visibility. These charges, they say, drive up restaurant prices, which has a negative impact on the economy as well as the business.

The BHA claims that Swiggy has been signing up eateries for Cost Per Click (CPC), Cost Per Acquisition (CPA), and sponsored advertising campaigns without getting their written or digital authorisation. Restaurants should be able to opt out of these advertising activities with only one click and no additional fees, according to the association’s demands. The group contends that companies ought to have total discretion over whether or not to engage in paid advertising.

Additionally, the BHA has objected to the purported imposition of service fees on the GST amount collected from clients prior to its transfer to the government. The group claims that these accounting errors and deductions have drastically decreased restaurant profits, with some companies allegedly receiving less than half of the billed order value.

BHA Honorary President P C Rao told PTI that the platform’s compensation system is the association’s main worry. “The main issue is that the payment and payout system is not functioning properly. There are too many deductions,” he said. Rao noted that restaurant owners are challenging a number of additional deductions rather than Swiggy’s regular service cost.

“We have no objection to the service charge. Whatever the service charge is, they can take it. But apart from that, they impose additional service charges, payout charges, advertisement charges, map-up charges, and various other charges without our permission, and deduct them,” he said.

Despite continuously bringing up the issue with the corporation, he further claimed that in certain instances, restaurants receive only Rs 40,000 to Rs 50,000 out of payouts totaling Rs 1 lakh.

The restaurant associations are calling for more transparency in negotiating settlements and pricing. They want no more automatic payment deductions when they make a complaint, some form of restitution for orders placed after food has been prepared, a detailed settlement report showing all deductions, the removal of one sided contractual clauses and specific relationship managers to handle restaurant partners.

The representatives of the associations said they are willing to keep working together with the food delivery platforms if the concerns were addressed within the given time frame. But if they do not get a written reply or corrective measure by 15 August, all restaurants in Bengaluru may be removed from their apps from Swiggy, they said, disrupting one of India’s biggest food delivery markets.

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