- Bengaluru restaurant owners may boycott Swiggy after August 15 if demands aren't met
- They seek fair partnership and consent before discounts on Swiggy platform
- Key demands include no automatic deductions and clear settlement reports
Bengaluru's restaurant owners' association have threatened to boycott online food delivery platform Swiggy after August 15 if their demands are not addressed. The protest comes amid allegations that excessive commissions, deep discounts and multiple deductions imposed by the platform are severely impacting restaurant profits.
Restaurant owners have demanded a fair and transparent partnership with Swiggy, urging the company not to offer discounts without the consent of restaurant partners. They have also sought greater transparency in advertisement charges and payment gateway fees.
Among their key demands are:
- No automatic deduction of money immediately after a customer complaint.
- Restaurants should not bear losses if an order is cancelled after the food has been prepared.
- A detailed settlement report for all deductions.
- An end to one-sided agreement terms.
- Appointment of a dedicated relationship manager for every restaurant.
The association has also called on Swiggy's management to hold talks with restaurant representatives. They warned that if there is no satisfactory response by August 15, restaurants will exit the platform and proceed with a citywide shutdown.
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P.C. Rao, Honorary President of the Bengaluru Hotel Association, alleged that Swiggy is making unscientific deductions, causing heavy financial losses to restaurant owners.
He claimed that after generating business worth Rs 1 lakh, restaurants are left with only around Rs 40,000 due to commissions, discounts, and other deductions.
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Rao said the current system is hurting both restaurant owners and customers. He added that the Bengaluru Hotel Association, Karnataka Hotel Association, and the National Restaurant & Bar Association have united to fight the issue.
He said restaurant owners are willing to continue their partnership with Swiggy if the unscientific deductions are stopped. Otherwise, they will withdraw not only from Swiggy but also from Zomato after the August 15 deadline.
