News · Commerce & Consumer Brands

Bengaluru restaurants threaten Swiggy boycott over commissions

By Startup Enthusiast · 23 July 2026

What they do

Swiggy operates food delivery, quick commerce (Instamart), and out-of-home consumption (Dineout)

Bengaluru restaurants threaten to stop accepting Swiggy and Zomato orders from August 15 unless concerns over commissions and discounts are resolved

Swiggy targets Rs 10,000 crore annual adjusted EBITDA by FY31 and plans to convert into an Indian-owned company

Bengaluru restaurants threaten to stop accepting Swiggy and Zomato orders from August 15 unless concerns over commissions, discounts and payment practices are addressed.
The Karnataka Hotel Association warns of a boycott if demands are not met.
Zomato meets association representatives and promises to resolve concerns within two weeks.
Swiggy has not yet engaged with the association as of the article date.
Swiggy later agrees to refund Bengaluru restaurants for promotional campaigns run without their consent after a meeting on August 6.
Swiggy targets Rs 10,000 crore annual adjusted EBITDA by FY31, announced at Capital Markets Day on August 6.
Swiggy shares surge over 5% on August 6 after the growth strategy announcement.
Swiggy seeks shareholder approval to convert into an Indian owned and controlled company at its AGM on August 18.

Restaurants claim they are left with only 45-50% of order value after deductions.
Restaurants are exploring alternatives like Rapido's Ownly (zero-commission platform) and direct ordering.
Restaurants are in talks with Flipkart ahead of its food delivery launch.
Analysts say new entrants could strengthen restaurants' negotiating position but see no serious threat to the Swiggy-Zomato duopoly currently.
Swiggy's domestic ownership crossed 50% on July 1, and the board approved raising the foreign shareholding cap to 49.5% on July 23.

Swiggy operates food delivery, quick commerce (Instamart), and out-of-home consumption (Dineout).
Instamart pushes the Switch proposition, with 400 brand tie-ups and in-house brands Noice (46+ categories, 380+ SKUs) and Nectr (fresh produce).
Swiggy plans to transition Instamart to an inventory model, which needs shareholder approval.
Swiggy is building AI systems across demand forecasting, fulfilment, partner management, monetisation, and internal operations.
Swiggy has an internal analytics tool called SAGE.
Instamart has 1,171 dark stores across 131 cities.
More than 45% of Instamart dark stores are contribution-margin positive.
Five of Instamart's seven largest cities are operating profitably.
Instamart achieved contribution break-even in May 2026.
Instamart quarterly orders were 114.5 million in the June quarter.
Instamart expects EBITDA breakeven at 250-300 million quarterly orders.
Food delivery monthly transacting users: 19.2 million in Q1FY27, up 17.8% YoY.
Platform monthly transacting users: 27.5 million in Q1FY27, up 27.4% YoY.
Nearly 70% of users transact less than once a month.
Around 30% of food orders are placed online.
Swiggy says it is debt-free.

Swiggy targets Rs 10,000 crore annual adjusted EBITDA by FY31.
Swiggy targets consolidated GOV of Rs 2.5 lakh crore by FY31.
Instamart targets GOV of Rs 1.5 lakh crore by FY31.
Dineout targets GOV of Rs 20,000-25,000 crore by FY31.
Swiggy aims for Rs 1 lakh crore net order value across businesses over the medium term.
Swiggy projects EPS to improve from a loss of Rs 16 in FY26 to a profit of Rs 30-33 by FY31.
Swiggy seeks shareholder approval to convert into an Indian owned and controlled company at its AGM on August 18.