AP hoteliers decide to bid adieu to Swiggy from Oct 14

Vijayawada: In what could be described as a blow to the food connoisseurs across the State, the Andhra Pradesh Hotels Association announced disassociation with the food delivery app Swiggy alleging that the delivery giant has been indulging in unethical practices resulting in heavy loss to the hotels across the State.

This will come into force with effect from October 14. AP Hotels Association president R V Swamy addressing the media here on Friday said that the food delivery app started with zero per cent commission fee for restaurants. However, over time these commission rates have escalated to 20-30 per cent.

RV Swamy flayed the food delivery app for announcing discounts to the customers without informing the restaurant management causing heavy loss to them. Moreover, Swiggy makes changes to the restaurant’s menu without the knowledge of management, often selling items at a lower price or offers such as Buy One Get One Free.

Referring to refund policies for cancelled orders, he said that neither the customer nor the restaurant receive refunds. He lambasted the apps for practices like promotional charges, crazy deals, discounts, high commission fees and others.

Due to these unethical practices, restaurants are losing 40-60 per cent of their menu prices. On top of this, the delivery app is holding the restaurant’s payout for up to 12 days, which puts financial strain on smaller establishments. As a result of these practices, particularly those implemented by Swiggy, the restaurant industry is suffering tremendously.

The Andhra Pradesh Hotel Association (APHA) has held three negotiation meetings with both Zomato and Swiggy. During these meetings, Zomato showed flexibility and assured that they would work towards more restaurant-friendly policies. Swiggy, however, has remained inflexible and refused to address the pressing issues raised by restaurant owners. As a result, APHA has decided to boycott Swiggy in Andhra Pradesh starting from October 14.