As per report the vijayawada Hoteliers’ Association announced on wednesday that 250 restaurants have decided to boycott food delivery platform Swiggy indefinitely from november 11. Meanwhile the decision was taken to protest against the rising commissions demanded by Swiggy, apart from several added ‘hidden’ charges which the association has called ‘unethical’.
According to report food delivery apps like Swiggy, Zomato and uber Eats entered into business with restaurants in vijayawada about a year and a half ago, with assistance from various restaurant associations. Meanwhile they initially charged zero commission, they slowly raised the commission charges to 5% and 10%, as their business in the city took off. The statement said “Now, after their business has grown manifold, they started pressuring the restaurants to increase of commission from 18% to 25%”.
Moreover the association complained that owing to an increase in the cost of hiring staff as well as the cost of ingredients, restaurant owners are unable to bear the heavy commission. The statement said “Apart from commission, these companies have order cancellation charges, telephone charges and many hidden charges, and are following unethical practices. They are deducting these charges unilaterally without our acceptance”.
