Vijayawada hotels to log out of Swiggy
Other apps could be next, they say
07/11/2019, STAFF REPORTER,VIJAYAWADA
Vijayawada Hotel Owners’ Association on Wednesday announced that all the hoteliers in the city would log out of online food delivery app Swiggy from 6 a.m. on November 11.
Addressing a press conference here, Association president P. Ravi Kumar and secretary Sanjay Mehta Jain said the delivery apps were mounting pressure on them to increase the commission.
‘Huge burden’
This has become a huge burden for the hotel owners due to the increase in prices of ingredients and operating costs. “Online apps like Swiggy, Zomato, Uber Eats and others had started businesses about a year-and-a-half ago with zero commission. They then began to charge 10% and increased it to 18%. Now, with their hold in the city becoming stronger, they are taking it to 25%.
“In addition, we have to bear the costs of order cancellations, telephone charges, and many other hidden charges,” Mr. Ravi Kumar said.
Hotel owners associations have already brought this issue to the notice of Competition Commission of India which is pursuing the case, he said.
“To start with, we have decided to stop logging in to Swiggy from November 11 and later we will extend it to other apps if things are not set right. We need the government to intervene and regulate the food delivery companies so that fair business practices are followed,” Mr. Jain said.
An e-mail and a message sent to Swiggy for clarification elicited no response.
Other apps could be next, they say
07/11/2019, STAFF REPORTER,VIJAYAWADA
Vijayawada Hotel Owners’ Association on Wednesday announced that all the hoteliers in the city would log out of online food delivery app Swiggy from 6 a.m. on November 11.
Addressing a press conference here, Association president P. Ravi Kumar and secretary Sanjay Mehta Jain said the delivery apps were mounting pressure on them to increase the commission.
‘Huge burden’
This has become a huge burden for the hotel owners due to the increase in prices of ingredients and operating costs. “Online apps like Swiggy, Zomato, Uber Eats and others had started businesses about a year-and-a-half ago with zero commission. They then began to charge 10% and increased it to 18%. Now, with their hold in the city becoming stronger, they are taking it to 25%.
“In addition, we have to bear the costs of order cancellations, telephone charges, and many other hidden charges,” Mr. Ravi Kumar said.
Hotel owners associations have already brought this issue to the notice of Competition Commission of India which is pursuing the case, he said.
“To start with, we have decided to stop logging in to Swiggy from November 11 and later we will extend it to other apps if things are not set right. We need the government to intervene and regulate the food delivery companies so that fair business practices are followed,” Mr. Jain said.
An e-mail and a message sent to Swiggy for clarification elicited no response.
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