Swiggy, Zomato Agree to Consent-Based Discounts; Bengaluru Hotel Bodies Defer Boycott to September 1, 2026

Swiggy and Zomato have agreed to changes sought by Bengaluru’s hotel and restaurant bodies over discount campaigns and deductions, as per a Financial Express news report. The agreements have led the associations to defer their planned boycott of the platforms. 

Restaurants were due to be taken off the apps from August 15, 2026. The deadline has now been moved to September 1, 2026, with August 31, 2026, set as the cut-off for the platforms to make the agreed changes. 

Approval for Discounts 

The main dispute concerns promotional campaigns paid for by restaurants. Hotel and restaurant owners had complained that they were enrolled in such offers without their approval, with the cost later deducted from their payouts. 

Zomato has agreed that these campaigns will be opt-in. It will also obtain approval through an OTP before a promotion starts and examine complaints about previous deductions on an outlet-by-outlet basis. 

Swiggy Agrees to Refunds 

Swiggy has agreed to seek consent before activating promotional campaigns and refund amounts collected for campaigns that were run without approval. The company is also expected to sign a memorandum of understanding with the industry bodies. 

The associations have raised a separate issue with automatic renewal of promotions. They want a fresh approval each time a campaign is extended, arguing that click-based thresholds can lead to renewals without the restaurant’s consent. 

BHA Raises Other Charges 

The Bengaluru Hotels Association (BHA) has asked Swiggy to limit deductions to agreed commissions and statutory charges. It also wants service charges to apply only to the food portion of the bill, excluding GST. 

BHA has listed several other charges it wants removed, including long-distance, payment collection, Pocket Hero, Swiggy One, restaurant cancellation, call centre, restaurant-sponsored delivery and Bolt fees. 

Toing and Support 

The association has also raised concerns about Toing, Swiggy’s budget offering, particularly its requirement for restaurants to match offline prices. BHA wants separate onboarding with explicit consent rather than automatic enrolment. 

It has also asked for a Swiggy representative to visit each hotel once a month and for a helpdesk at its office every Friday to handle operational, accounting and payout issues. 

Read More: Akasa Air Introduces 'Akasa Elevate' Loyalty Programme to Attract Frequent Flyers, Corporate Travellers! 

Conclusion  

The immediate boycott has been deferred, but the associations have kept August 31, 2026, as the deadline for the remaining demands. If the issues are not addressed, BHA has indicated that restaurants could switch off Swiggy from September 1, 2026. 

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