Restaurant owners in Bengaluru have warned of a possible boycott of food delivery platforms Swiggy and Zomato, alleging that high commissions, deep discounting and multiple deductions are significantly affecting their profitability.

The restaurant associations have said they may stop using both platforms and even consider a citywide restaurant shutdown after August 15 if their concerns are not addressed through discussions with the companies.

Why are restaurants protesting?

According to restaurant associations, several charges imposed by food delivery platforms are reducing their earnings.

They claim that high commissions, platform-driven discounts and other deductions leave restaurants with a much smaller share of the revenue generated through online orders.

The associations are demanding a more transparent and balanced partnership model between restaurants and food delivery companies.

Key demands of restaurant associations

Restaurant owners have put forward several demands, including:

• No discounts should be offered without the restaurant’s consent.
• Greater transparency in advertisement charges and payment gateway fees.
• Detailed settlement reports for every transaction.
• An end to automatic deductions after customer complaints.
• Compensation for cancelled orders after food preparation.
• Review of one-sided contractual agreements.
• Appointment of dedicated relationship managers for restaurant partners.

The associations say these measures would improve trust and ensure a fairer business relationship.

Boycott warning after August 15

Restaurant bodies have urged Swiggy and Zomato to initiate discussions with industry representatives before the deadline.

If no agreement is reached, they have warned that participating restaurants could:

• Withdraw from both food delivery platforms.
• Launch a coordinated shutdown of restaurants across Bengaluru after August 15.

The associations maintain that their objective is to reach an amicable solution rather than disrupt services.

Industry bodies join the protest

According to P.C. Rao, Honorary President of the Bengaluru Hotel Association, the current commission structure and deductions are causing substantial financial losses for restaurant owners.

He alleged that a restaurant generating ₹1 lakh in sales through a food delivery platform may receive only about ₹40,000 after commissions, discounts and other deductions.

Rao also said that the issue affects customers as well as restaurant operators.

The protest is reportedly being supported by several industry organisations, including:

• Bengaluru Hotel Association
• Karnataka Hotel Association
• National Restaurant and Bar Association

Restaurants seek dialogue

Despite the strong warning, restaurant associations have indicated that they are willing to continue partnering with Swiggy and Zomato if their concerns are addressed.

They have called on both companies to hold discussions and rationalise commissions and deductions before the proposed August 15 deadline.

As of now, neither platform has officially announced any changes in response to the demands.

FAQ

Why are Bengaluru restaurants threatening to boycott Swiggy and Zomato?

Restaurant associations allege that high commissions, deep discounts and multiple deductions are reducing their profits and are seeking a more transparent partnership model.

What are the restaurants demanding?

They want transparent settlement reports, consent-based discounts, compensation for cancelled orders, an end to automatic deductions after customer complaints and fairer contractual terms.

When could the boycott begin?

Restaurant associations have said they may withdraw from Swiggy and Zomato and consider a citywide shutdown after August 15 if no resolution is reached.

Have Swiggy and Zomato responded?

At the time of writing, there has been no official announcement from either company regarding the demands made by the restaurant associations.

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The post Bengaluru Restaurants Warn of Swiggy, Zomato Boycott After August 15 Over Commission Dispute first appeared on Rightsofemployees.com.

However, for this, customers will have to spend Rs 299. Let’s know in detail about this new membership plan –

What facilities will be available?

The company has said that ‘One BLCK’ members will get faster food delivery. There will also be a one-time guarantee for this. Apart from this, members will also get the facility of top customer care agents. Also, their problems will be solved on priority basis. For Swiggy’s ‘One BLCK’ service, customers will have to spend Rs 299. In this, they will get the facility for 3 months.

The company will launch the ‘One BLCK’ service in phases. Currently, this facility will be available to only selected customers in the country. At the same time, existing Swiggy ‘One Members’ can also upgrade to it.

New facilities will also be available

While launching this new service, Swiggy has said that this is the industry’s first premium membership. ‘One BLCK’ is a membership plan in which you will get offers on different categories of food delivery, quick commerce. Members will also get offers related to partner brands like Amazon Prime, Hotstar etc.

What has the co-founder of Swiggy said?

Swiggy co-founder and CGO Phani Kishan said, “Swiggy ‘One BLCK’ is like a business class for our customers. With this launch, we are setting a new benchmark in the industry.” In the year 2021, the company launched Swiggy One Members. 80 percent of Swiggy One members use one or more Swiggy services. At the same time, these members spend 3 times more than the normal users of Swiggy.

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The service is already operational in key locations in six major cities – Hyderabad, Mumbai, Delhi, Pune, Chennai and Bengaluru. It will be rolled out to more districts in the coming weeks. Bolt provides instant food delivery service from select restaurants within a two kilometer radius of the consumer.

These things will be delivered under Bold Service

Swiggy said the service will be rolled out to more regions in the coming weeks. Bolt offers popular dishes like burgers, hot beverages, cold beverages, breakfast items and biryani that require minimal preparation time. Swiggy said it will also focus on ready-to-pack dishes like ice cream, desserts and snacks.

The company said that in particular, delivery partners are not informed about the difference between Bolt and regular orders. This means that they are neither penalized nor incentivized based on delivery time.

Swiggy was launched ten years ago

Rohit Kapoor, CEO, Food Marketplace, Swiggy, said, “Bolt is the next offering in our mission to provide unmatched convenience. Ten years ago, Swiggy revolutionized food delivery by reducing the average wait time to 30 minutes. Now we’re reducing it further.”

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The companies have increased the platform charge taken from customers per order in major markets like Bengaluru and Delhi. Earlier these companies were charging Rs 5 in these markets. Now Swiggy was hinting at charging a platform charge of Rs 7 in Bengaluru, which has been removed and reduced to Rs 6.

Companies had increased prices last year as well

Let us tell you that both the companies started the platform charge last year, which was initially Rs 2 per order. In April, Zomato increased its platform charge by 25% to Rs 5 per order in major markets including Bengaluru.

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The company is charging more by showing more and then giving discount

Zomato and Swiggy have been experimenting with platform charges to increase their overall revenue and profit. In January, Swiggy showed a platform charge of Rs 10 for select users, which was much higher than the Rs 3 charged to many users at that time. Users were shown a charge of Rs 10 and later charged Rs 5 after showing a discount.

Other companies are charging this much

Like these platforms, Blinkit and Instamart also charge a similar amount called handling charge. Swiggy Instamart charges Rs 5 per order in Delhi, while Blinkit charges Rs 16. Deepak Shenoy, CEO of Bengaluru-based company CapitalMind, has said that he has reduced ordering from these platforms. On X (formerly Twitter), he wrote that ordering from Swiggy/Zomato has reduced massively, maybe only once in a weekend, like today and saw that their platform charge is now Rs 6. Anyway, they also take 30% from restaurants.

People are ordering less

The founder-CEO also revealed that he used to order in about 12 times a week, which has come down to either once a week or once every two weeks. It has become once a week or once in 2 weeks. Home-cooked food is a much healthier option.

The post Swiggy and Zomato increased platform fees, how much will it affect your pocket? first appeared on Rightsofemployees.com.

No need to redeem the cashback

There is no need to redeem the cashback with the Swiggy HDFC Bank Credit Card. This card has auto-credit cashback facility. You get cashback in Swiggy Money within 10 days of bill generation. It is to be noted that Swiggy Money money can only be used for transactions within the Swiggy platform.

Special features of the card-

• Cardholders will get 3 months free membership of Swiggy One as a welcome benefit.
• If users order something through Swiggy, such as food delivery, quick grocery delivery, dineout and other services and pay through this card, then 10 percent cashback will be available. This category will get the benefit of up to Rs 1500 cashback every month.
• Through this card, 5 percent cashback will be available on purchases made on Amazon, Flipkart, Nykaa, Ola, Uber and 1000+ e-commerce platforms. This category will get the benefit of up to Rs 1500 cashback every month.
• Apart from this, customers can avail 1% cashback on all other expenses. This category will get the benefit of up to Rs 500 cashback every month.
• No cashback will be available on rent payment, wallet load, EMI transactions etc.
• This card is equipped with contactless technology, which also gives customers the facility of ‘Tap and Pay’ i.e. payment can be made by just tapping on the POS machine without swiping the card.

Swiggy HDFC Bank Credit Card Charges

>> The joining fee for this card is Rs.500.
>> The renewal membership fee of this card is Rs.500. However, the renewal fee is waived off after spending Rs 2 lakh in a year.

Eligibility for Swiggy HDFC Bank Credit Card

• Salaried or self employed person can take this card.
• People in the age group of 21 years to 60 years and employed people getting gross salary of at least Rs 25 thousand per month can apply.
• People between the age of 21 years to 65 years and self-employed with an annual income of more than Rs 6 lakh can apply for this card.

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These new guidelines for e-commerce companies will be applicable from 25 November. The purpose of these new rules is to clamp down on fake and paid reviews. After their implementation, e-commerce companies will no longer be able to get fake and paid reviews done.

Customers will be helped to buy the right product

Under the rules issued by the government on Monday, now paid reviews will have to be marked separately. This will help the customers. On the basis of consumer reviews, customers will be able to buy the right product. It has been agreed to implement the guidelines in e-commerce companies. Let us tell you that the guidelines are not mandatory right now. However, soon the guidelines will be made mandatory. Under the guidelines, if the companies do not agree, then strict action will be taken against the companies. This action will be taken under the Consumer Protection Act.

According to the rules, this matter will come under Unfair Trade Practice. Under this, there will be a provision to impose penalty on the companies. Companies can be fined up to Rs 10 lakh.

Let us tell you that due to such fake reviews, there have been cases related to influencing the customers, where they took the loss by buying the wrong product relying on the review. With the new guideline, it will be expected that people will be able to avoid such fake reviews in future.

Companies like Amazon, Flipkart have to be careful

The purpose of these guidelines is to protect the interests of the consumer and to bring out the correct information about a product. So that he can take the best decision regarding the purchase of goods. The scope of these guidelines will include positive reviews by companies for their products as well as negative reviews of other company’s products. With this step of the government, action will be taken against companies like Zomato, Swiggy, Naeca, Amazon and Flipkart.

Explain that e-commerce companies also give reviews of customers who have bought and are using that product along with any product. Their aim is to give correct information about the product to the customer. However, to increase sales, many times companies ask selected customers to write positive reviews for their products by giving them gifts etc.

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