Online food delivery app Swiggy has denied negotiating with the city restaurant owners even after they had logged off from the online app, demanding a reduction in the commission it charged, said Vijayawada Hotel Owners’ Association Secretary, Sanjay Mehta Jain. “The app is playing a divide and rule policy with the restaurants. They have been approaching those restaurants that have logged out of the app individually, and asked them to provide their services. However, all of us stand firm on our proposition,” said Mr. Jain.
Compounding woes
Such a move came after the Association, at a press conference held last week had decided to impose an indefinite ban on Swiggy, Zomato and Uber Eats citing the online food delivery apps increased their commission rates from 18 to 25 per cent on the orders. This has compunded the hoteliers’ burden in the face of rising cost of ingredients and operations.
“We want the online food delivery apps to reduce the commission to 15 % as opposed to the current rates. Ever since their hold has become stronger in the city since last year, they have been increasing the commission rates gradually,” the Association Secretary said.
‘Negotiate or face ban’
“We will also ban the use of both Zomato and UberEats if they do not negotiate with us. While Zomato is yet to reply, Uber Eats had communicated that they were ready to negotiate with us,” he added. The Association has 240 restaurants, and about 270 other restaurants in the city have extended their support over the issue.
Delivery boys in a limbo
The face-off between the Association and the aggregator has left the delivery partners in a limbo as most of them claimed to be full-time partners of the food delivery apps.
“Our earnings fluctuate as we get paid depending on the number of deliveries we make. I have already been denied work at restaurants with other similar platforms due to lack of vacancy. Being the sole breadwinner of the family, I am desperately searching for jobs elsewhere,” said Mohammed Fareed, 37, a delivery partner.
