Swiggy & Zomato May Lose 1,000+ Bengaluru Restaurants After August 15 Amid Boycott Threat
Brief By Newsbrief / 5:05 PM on 30 Jul 2026
Food delivery platforms Swiggy and Zomato could face a major setback in Bengaluru as more than 1,000 hotels and restaurants have threatened to delist themselves from both apps starting August 15. The move comes after restaurant owners accused the platforms of imposing heavy commissions, making unauthorized price reductions, and deducting payments in ways they believe are hurting already thin profit margins.
According to reports, restaurant associations claim that despite rising operational expenses such as rent, employee salaries, and raw material costs, their earnings are shrinking because of platform-related charges and discount policies. They argue that the current business model has become financially unsustainable for many restaurants.
The associations have asked Swiggy and Zomato to provide a formal written response to their concerns before August 15. Their key demands include stopping automatic payment deductions based on customer complaints, ensuring restaurants are compensated if an order is cancelled after food has already been prepared, preventing discounts from being applied without the restaurant's consent, and resolving payment-related disputes more quickly.
Restaurant representatives have warned that if their demands are not addressed, thousands of eateries could disappear from both food delivery platforms overnight. Such a move could significantly impact customers by reducing restaurant choices and disrupting food delivery services across Bengaluru.
Industry leaders have also argued that excessive advertising charges and promotional discounts imposed by the platforms increase the financial burden not only on restaurant owners but also indirectly on consumers.
The dispute is also drawing attention from investors, as Swiggy and Zomato remain two of India's largest online food delivery companies. Any large-scale delisting of restaurant partners could influence market sentiment and investor confidence. Market participants will closely monitor the outcome of discussions between the platforms and restaurant associations, as the resolution could have implications for both the food delivery ecosystem and the companies' future business performance.