The core complaint, according to The News Minute and Business Standard, is discounts restaurants say they are made to fund on top of high commission. MarketScreener, citing Reuters, reports leaked documents showing Indian antitrust regulators found that Zomato and Swiggy had breached competition law, though a Substack essay by Harshit Rakheja argues NRAI's monopoly claims oversimplify the market.
What restaurants are asking for
The threatened boycott in Bengaluru is the most visible recent clash. The News Minute, and Business Standard in its explainer on the dispute, both put the same grievance at the centre: discount schemes that restaurants say they have little choice but to pay for, stacked on top of already high commission. Restaurants also want specific changes in how the platforms deal with them:
- Payout statements that are transparent
- Cancellation policies that treat restaurants more fairly
- A dedicated contact at each platform instead of an anonymous support queue
Business Today's report on how the dispute unfolded lists the conditions the restaurant associations attached to calling the boycott off.
What the antitrust probe found
Restaurants are not complaining in a vacuum. MarketScreener, citing Reuters, reported on leaked investigation documents in which Indian antitrust regulators concluded that the two platforms' commission and exclusivity practices were unfair and breached competition law.
The argument is also an old one. Years before the Bengaluru dispute, Gulf News was reporting on restaurant-industry anger at discounting under Zomato Gold, which restaurants branded "unethical". This friction has been building for a long time rather than flaring up overnight.
The case against blaming the platforms
Not everyone accepts the restaurant associations' framing. In a Substack essay, Harshit Rakheja argues that the monopoly and antitrust case NRAI has made against the two platforms oversimplifies a market that he sees as more competitive than the association's framing suggests. Whether or not you agree with him, it is a useful check against treating the dispute as a simple story of restaurants versus platforms.
Is ONDC a real alternative?
Business Today asked prominent Indian restaurateurs whether ONDC, with its low commission and interoperable network, could stand in for Zomato and Swiggy. Their answers were mixed rather than a clear yes. Asad Abrar, writing on Substack, is more doubtful. His analysis sets out the structural hurdles ONDC must clear to compete with the two incumbents, including weak discovery for consumers and limited promotional firepower.
Recent quarterly results, as reviewed by Storyboard18, add some context: ten years in, food delivery in India is still structurally unprofitable. That suggests the squeeze restaurants feel is not only a case of the platforms taking more; the platforms are still chasing lasting profits themselves.
One concession: customer data
Not every recent change has been adversarial. According to MediaNama, Zomato has moved to start sharing customers' contact details and order history with restaurants, with Swiggy expected to do the same, after years of complaints about data masking. Entrackr's reporting adds a caution: as both platforms grow their own cloud kitchens and private-label food brands, it is still an open question whether restaurant and customer data will be handled neutrally.
What this means for your restaurant
- Work out what the discounts you fund cost you on top of commission, and check your payout statements and how cancellations are handled; these are the points Bengaluru restaurants have raised.
- If you are weighing up ONDC, set its lower commission against the discovery and promotion gaps described in Asad Abrar's analysis.
- As Zomato starts passing on customers' contact details and order history, with Swiggy expected to follow, use that data to understand the customers who order from you.
- Keep both sides in view: restaurants have real grievances, but the platforms are also still fighting for profitability.
Sources
- Exclusive: India's probe finds Zomato, Swiggy breached antitrust laws, documents show — MarketScreener (Reuters)
- When discounts cost dearly: Why Bengaluru restaurants are upset with Swiggy, Zomato — The News Minute
- Bengaluru restaurants threaten Swiggy, Zomato boycott: What's the dispute? — Business Standard
- Bengaluru restaurants to boycott Swiggy, Zomato from August 15. Here's why — Business Today
- The Boy Who Cried 'Monopoly': Why NRAI's Fight Against Zomato & Swiggy Rings Hollow — Substack (Harshit Rakheja)
- ONDC vs Zomato, Swiggy: Here's what India's top restaurateurs prefer — Business Today
- #10 How ONDC can compete with Swiggy/Zomato? — Substack (Asad Abrar)
- Food delivery profit still elusive after a decade; Zomato, Swiggy Q2 underscore challenge — Storyboard18
- Zomato in trouble for unethical 'deep-discounting' in its 'Gold' package — Gulf News
- Is restaurant data truly safe with Swiggy and Zomato growing private-label ventures? — Entrackr
- Zomato, Swiggy to Share Customer Data With Restaurants — MediaNama
This article summarises the reporting and guides listed above; the figures belong to those sources and are attributed in the text. Check anything that affects your business against your own platform agreements, payout statements and advisers.