Restaurants across Namakkal in Tamil Nadu have stopped accepting food orders via Swiggy and Zomato starting Tuesday, following a standoff with the online delivery platforms over steep commission charges and opaque pricing practices.
The decision came after the Town and Taluk Hotels and Bakery Owners Association, under the leadership of president M. Ramkumar, held an emergency meeting on June 23. During the session, members unanimously agreed to suspend online food delivery services beginning July 1.
Restaurant owners allege that food aggregators are imposing excessive commissions, including hidden charges like advertising fees, which significantly cut into their earnings. They further stated that commission rates vary arbitrarily between restaurants, creating unfair competition.
Association secretary Arulkumaran told the press that the platforms’ practices are unsustainable. “In Namakkal taluk alone, 85 eateries handle online orders worth ₹10 lakh daily,” he said, adding that the delays in receiving payments — often only after a week — are worsening their cash flow problems.
On July 1, restaurants not only stopped accepting new online orders but also cancelled existing ones. Negotiations between the association and the platforms failed to bring about a resolution, prompting an indefinite halt to all digital food deliveries.
The protest underscores growing tension between small businesses and tech aggregators, raising fresh questions about platform accountability and equitable business practices.