Policy · Commerce & Consumer Brands

Swiggy agrees to refund promotional fees to restaurants

By Startup Enthusiast · 7 August 2026

What they do

Swiggy is an online food delivery platform connecting restaurants with customers

Swiggy agreed to refund promotional fees charged without consent after talks with restaurant bodies

Over 250 Bengaluru restaurants had threatened to delist, citing high commissions and shrinking margins

Swiggy agreed to refund promotional fees charged to restaurant partners without their consent.
The agreement came after talks between Swiggy executives and representatives of BBHA, NRAI, and FHRAI.
Swiggy CEO Rohit Kapoor, CBO Sidharth Bhakoo, and Dineout/Scenes lead Swapnil Bajpai were in the negotiations.
Industry bodies extended the delisting deadline to September 1 from August 15.
The extension allows Swiggy time to process refunds and resolve restaurant grievances.
Zomato also faced similar demands and secured a deadline extension after meetings.
Over 250 Bengaluru restaurants had threatened to delist from Swiggy and Zomato.

Restaurants cited high commissions, arbitrary fees, and shrinking margins as reasons for the delisting threat.
Eateries demanded a halt to forced promotional charges, more transparency in platform marketing, and a dedicated help desk.
NRAI president Sagar Daryani said delivery orders now take a much larger share of restaurant revenue since the pandemic.
Rapido launched Ownly food delivery in March 2026 with zero commission for restaurants.
Ownly claims nearly 10% of Bengaluru's online food delivery market within five months of launch.

Swiggy operates an online food delivery platform connecting restaurants with customers.
It also offers Dineout for restaurant reservations and Scenes for experiences.
The company makes money through commissions from restaurants, delivery fees, and promotional charges.
Swiggy operates across multiple cities in India.
It competes with Zomato, Rapido's Ownly, and Flipkart's upcoming food delivery service.

Swiggy will process refunds and resolve restaurant grievances before the September 1 deadline.