Now Reading: Swiggy, Zomato Get Sept 1 Deadline as Restaurants Extend Boycott Call
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Swiggy, Zomato Get Sept 1 Deadline as Restaurants Extend Boycott Call
Swiggy, Zomato Get Sept 1 Deadline as Restaurants Extend Boycott Call
Swiggy has agreed to refund promotional charges allegedly levied on restaurant partners without consent, following negotiations with industry bodies including BBHA, NRAI, and FHRAI. The foodtech platform's CEO Rohit Kapoor and other…
The Story in Brief
Swiggy has agreed to refund promotional charges allegedly levied on restaurant partners without consent, following negotiations with industry bodies including BBHA, NRAI, and FHRAI. The foodtech platform's CEO Rohit Kapoor and other senior executives were part of the talks. As a result, restaurant associations have extended their deadline for delisting from Swiggy to September 1 from August 15. Zomato also secured a similar reprieve after meetings, pushing its deadline to September 1.
More than 250 Bengaluru restaurants are threatening to delist from the platforms, citing unsustainable costs from high commissions, forced discounts, and opaque payouts. Their demands include transparent commission structures and an end to unilateral deductions. The standoff comes as Rapido's zero-commission food delivery app Ownly has captured nearly 10% of Bengaluru's online market within five months, with Flipkart also planning to launch its own service soon.
The Indian Opinion
Both sides have valid points: restaurants struggle with razor-thin margins under platforms' pricing power, but platforms argue their commissions fund delivery logistics and customer acquisition. The narrative of greedy aggregators versus plaintive eateries oversimplifies a complex interdependence. The real test will be whether Ownly’s zero-commission model proves sustainable or if Flipkart’s entry forces more transparency industry-wide. If platforms can demonstrate fair, itemised commission structures, trust might return. Otherwise, the boycott could escalate beyond Bengaluru.
Sources (3): ndtvprofit.com, ndtvprofit.com (2), inc42.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
