- January 14, 2019 / 3 min readThe list of demands put forth by the industry includes – lowering commission, 100% payment made to restaurants in case of cancellation, processing payments every 48 hours etc.
The ongoing rift between online aggregators and restaurants are turning sour as over 500 restaurants and hotels blacklisted the platform for its poor business practices from the state’s financial capital Ahmedabad.
Following the same the city business head for Swiggy, Rutvij Oza, has stepped down.
“Today is my last day at Swiggy,” he told ET on Saturday evening by asserting that the current Swiggy-industry confrontation has nothing to do with his resignation. “I was in my transition period since 2 months anyways and will be joining my new company on Monday,” said Oza who was the business head in Ahmedabad ever since Swiggy launched here one and half years ago.
As per industry records, Swiggy and Zomato together handle 70,000 to 80,000 takeaway orders with average order size worth Rs 270 per day in Ahmedabad city.
However, the restaurants and hotels are up in arms against their business practices pertaining to huge commissions that they allege is robbing them off their margins.
The Hotel and Restaurant Association (Gujarat) has threatened to boycott other aggregators including Zomato and Uber Eats on Monday if they do not come up with revised business proposals, HRA Committee member Rohit Khanna added.
The list of demands put forth by the industry includes – lowering commission, 100% payment made to restaurants in case of cancellation, processing payments every 48 hours, sharing customer database, et al.
“We are protesting against the huge commission charged by these aggregators that range from 18% to 24%. They charge commission from not just the eateries, but also customers,” shared Narendra Somani, President, HRA adding that while business of takeaway has grown, dine-in fallen by over 12% in last one year. Since Swiggy did not relent, we have boycotted it.
Search for top Restaurant Suppliers in your city