Zomato has assured restaurant owners in Bengaluru that it will address their concerns after an escalating dispute over commissions, discounts, payment deductions, and billing transparency threatened to disrupt food delivery services in one of India’s largest markets. The company’s leadership met representatives of the Bruhat Bengaluru Hotels Association (BBHA) and agreed to review several operational issues raised by restaurant partners. Meanwhile, Swiggy was scheduled to hold similar discussions with the association on Friday as both platforms attempt to prevent a proposed boycott by thousands of restaurants from August 15.
The meetings come after BBHA warned that member restaurants could stop accepting orders through both Zomato and Swiggy unless the platforms introduce changes to their commercial practices. Restaurant owners argue that commissions, discount-sharing arrangements, advertising expenses, and payment deductions have significantly eroded already thin profit margins. The standoff represents the latest chapter in a long-running conflict between food delivery platforms and restaurant partners over the economics of online food delivery.
Zomato Promises Action on Restaurant Concerns
During discussions with Bengaluru restaurateurs, Zomato reportedly agreed to examine several key issues raised by restaurant owners.
Among the concerns discussed were:
- High commission charges.
- Platform-funded discount structures.
- Billing transparency.
- Payment deductions.
- Settlement-related grievances.
As an immediate measure, Zomato has introduced an OTP-based approval system for discounts, requiring restaurants to explicitly authorize promotional offers before they are applied. The company said the feature is intended to improve transparency and ensure discounts are not activated without restaurant consent.
Key Developments
| Item | Details |
|---|---|
| Company | Zomato |
| Meeting | Bruhat Bengaluru Hotels Association (BBHA) |
| Immediate Action | OTP approval for restaurant discounts |
| Main Issues | Commissions, discounts, deductions, billing transparency |
| Proposed Boycott Date | August 15, 2026 |
Swiggy Set to Hold Talks
Following Zomato’s meeting, Swiggy’s senior management was scheduled to meet BBHA representatives on Friday.
Restaurant owners expect discussions to focus on:
- Commission structures.
- Discount-sharing policies.
- Payment reconciliation.
- Operational transparency.
- Long-term partnership terms.
The outcome of the discussions could determine whether Bengaluru restaurants proceed with their proposed boycott.
Why Restaurants Are Protesting
Restaurant associations argue that the current economics of food delivery have become increasingly difficult to sustain.
According to BBHA, key concerns include:
- Commission rates that significantly reduce margins.
- Discounts funded partly by restaurants.
- Advertising costs to improve app visibility.
- Payment deductions without sufficient transparency.
- Delays and disputes over settlements.
Restaurant owners have also requested:
- No discounts without explicit approval.
- Clear, itemized settlement reports.
- Faster dispute resolution.
- Compensation for orders cancelled after food preparation.
- Greater transparency in platform billing.
Restaurants’ Main Demands
| Demand | Objective |
|---|---|
| Transparent billing | Clear breakdown of charges |
| Approval before discounts | Better control over pricing |
| Fair commissions | Improve profitability |
| Faster settlements | Reduce payment disputes |
| Better grievance resolution | Strengthen restaurant-platform relationships |
Industry-Wide Implications
The Bengaluru dispute extends beyond a single city.
It comes at a time when:
- Government-backed ONDC is positioning itself as a lower-cost alternative.
- New entrants are exploring food delivery with lighter commission models.
- Restaurant associations are seeking greater bargaining power against dominant delivery platforms.
For Zomato and Swiggy, resolving the dispute is important because Bengaluru is one of India’s largest online food delivery markets and often serves as a testing ground for new products and business models.
Looking Ahead
Zomato’s decision to engage directly with Bengaluru restaurateurs and introduce an OTP-based approval system for discounts signals a willingness to address at least some of the concerns raised by restaurant partners. Swiggy’s upcoming discussions will be equally important, as both companies seek to avoid a large-scale boycott that could disrupt food delivery operations in one of their most important markets.
Looking ahead, the outcome of these negotiations could shape future relationships between food delivery platforms and restaurant partners across India. If meaningful changes are introduced around commissions, discount approvals, and billing transparency, they could become a template for other cities. However, if talks fail, the proposed August 15 boycott may intensify pressure on the industry’s current business model and accelerate interest in alternative food delivery networks.
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