Industry

Hotels body decides to boycott Zomato scheme

Image for representational purposes only.

Image for representational purposes only.   | Photo Credit: AFP

Says cost of manufacture cannot be recovered on delivery services under scheme.

The Indian Hotel and Restaurant Association (AHAR) on November 26 said it had unanimously decided to boycott food delivery services by Zomato under the Zomato Gold scheme with immediate effect.

The decision was announced in a meeting held by the AHAR with their members in Mumbai on November 7. In a statement, the AHAR pointed out that there would be no gain for the hoteliers and it would only benefit the food aggregator company.

The Zomato Gold scheme offers one-on-one free. AHAR said that the hoteliers did not have any major issues from Zomato Gold Dine. However, if the same offer is announced on delivery services, hotel owners would hardly recover the cost of manufacture as they will get only 5 to 10% out of total expenses done. However, Zomato will get 30% service charges out of it.

“For the betterment of hotels in Mumbai, it is important to completely oppose the Zomato Gold delivery services,” the AHAR statement read.

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Printable version | May 27, 2020 4:24:55 PM | https://www.thehindu.com/business/Industry/hotels-body-decides-to-boycott-zomato-scheme/article30085622.ece

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