Business

Zomato Pay, Swiggy Dinner are trying to trick restaurants with ‘discount program’, know what is the matter

Photo:FILE swiggy zomato

Food delivery business is booming in the country. People are using online apps to eat more comfortably in their home or office. The two food delivery companies in the country are Zomato and Swiggy, which together account for nearly 90 per cent of the food delivery business. These companies offer discounts to the customers. But now restaurants are accusing these companies of looting.

what is the matter

The National Restaurant Association of India (NRAI) has issued an advisory against the ‘discount program’ offered by Zomato Pay, Swiggy Diners to its members. NRAI has said that offering such discount programs is against the interest of restaurant owners. The consultation alleges that Zomato and Swiggy are acting as ‘middlemen’ to earn money on restaurant bills. Zomato Pay and Swiggy diners essentially offer discounts when they join their discount programs and also charge a restaurant commission on every bill.

15 to 40 percent off

NRAI wrote to its members, “Both Zomato Pay and Swiggy Diners operate in broadly the same manner and do not charge customers who join the program, while restaurants are mandated to be a part of the program. A discount of 15 to 40 percent has to be given.

4 to 12 percent commission on every transaction

“The restaurant is required to pay commission in the range of four to 12 per cent on every transaction made through payment platform related to Zomato or Swiggy whereas competing payment platforms charge commission of one to 1.5 per cent,” the association said. NRAI said, “The basic question here is why should a restaurant pay commission to a middleman for giving discount to its own customer?” Zomato spokesperson did not comment on the matter raised by NRIA. But said, “With the new dining offering, Hyderabad has seen great results in a matter of weeks. We are confident that we will create tremendous value and growth for the industry.”

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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