Bengaluru hotels threaten to stop Swiggy orders over deep discount demands

Bengaluru's hotel owners have threatened to stop taking orders through Swiggy, escalating a long-simmering dispute over deep discount demands and high commission rates. The Bruhat Bengaluru Hotels Association (BBHA) issued the ultimatum, saying its members will delist from the platform if their conditions are not met.

The conflict centres on Swiggy's insistence on restaurants offering steep discounts, often at their own cost. Hoteliers claim these forced promotions, combined with commission fees, make it impossible to run a profitable business. Several members have already stopped accepting orders, with more expected to follow.

Discount demands and commission rates under fire

BBHA has listed multiple grievances. The primary issue is Swiggy mandating restaurants to participate in discount schemes without sharing the financial burden. Hotel owners say discounts of up to 50% on menu items are being forced upon them, cutting deeply into already thin margins.

Commission rates remain a flashpoint. While Swiggy has revised its commission structure in the past, hoteliers argue the current rates, ranging from 15% to 25% per order, are still too high. They want a flat, lower commission and an end to what they call 'arbitrary' charges.

Impact on Bengaluru's food delivery ecosystem

Bengaluru is a major market for Swiggy. A large-scale withdrawal of restaurants would severely limit choices for customers and hurt the platform's reliability. The BBHA claims it represents over 3,000 hotels in the city, including many popular eateries.

For customers, this could mean longer delivery times, higher prices, or fewer options on the app. Some restaurants have already started directing customers to order directly, bypassing aggregators to avoid the commissions.

Precedent from other cities

This is not an isolated incident. Similar protests have erupted in Delhi, Mumbai, and Hyderabad over the past two years. Restaurant associations in those cities have periodically threatened to boycott Zomato and Swiggy, leading to temporary truces but no permanent resolution.

The aggregators have defended their model, arguing that discounts drive customer volume and visibility. They maintain that the platform's value — in terms of marketing reach, logistics, and payment processing — justifies the commission structure.

What happens next

BBHA has given Swiggy a deadline to respond. If no agreement is reached, the association will formally ask all members to suspend operations on the app. Swiggy has not yet issued a public statement on the ultimatum.

The coming days will determine whether this escalates into a full-blown boycott or results in a negotiated settlement. For now, Bengaluru's food delivery habits hang in the balance.