Swiggy, Zomato wants hotels to increase price; And hotel association boycotts them

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Hotel and Restaurant Association (Gujarat) (HRA) have boycotted Swiggy and Zomato and has said that the hotels will not concede to the suggestion by the aggregators to increase food prices to absorb high commissions charged by Swiggy and Zomato.

The industry body claimed that more than 500 restaurants and hotels have blacklisted Swiggy while many have boycotted Zomato for their poor business practices. It claimed that heavy commissions charged by the platforms had been choking off their profits (source).

OYO too is facing similar resistance from budget chains.

ONLINE GETS COSTLIER. For Everybody

Online companies have been forcing restaurants to raise the food price by 20% to absorb the high commissions

Online was supposed to remove the inefficiency and bring down the cost, but like any other mafia business – the boss starts to dictate the price.

Just that it isn’t clear who is the boss now.

The local restaurants or the aggregators?

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