The Bengaluru Hotel Owners Association has threatened to boycott Swiggy over alleged unfair business practices, including unauthorised offers, delayed payments and commission deductions. An emergency meeting on July 28 will decide the association's next course of action.
A major confrontation is brewing between the Bengaluru Hotel Owners Association and online food delivery platform Swiggy, with the association threatening to boycott the app or even seek its ban in the city. Hotel owners have alleged that Swiggy's business practices are causing them significant financial losses, amounting to crores of rupees, and have urged the state government and the concerned authorities to intervene. The association claims that restaurants, ranging from small eateries to large establishments, are being unfairly burdened by the platform's policies, prompting calls for immediate corrective action.
According to the association, hotels across Bengaluru are collectively losing lakhs of rupees every day because of Swiggy's alleged practices. In response, the Bengaluru Hotel Owners Association has convened an emergency meeting on Tuesday, July 28, to discuss the issue and decide on its future course of action. The association has warned that if its concerns remain unaddressed, it may suspend all food deliveries through Swiggy across the city.
Hotel Owners Raise Multiple Allegations Against Swiggy
The Bengaluru Hotel Owners Association has levelled several allegations against Swiggy, claiming that the platform's policies are adversely affecting restaurants.
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The association's key concerns are as follows:
Promotional Offers Introduced Without Hotels' Consent
According to the association, Swiggy frequently introduces promotional offers on its platform without informing or obtaining the consent of partner restaurants. For example, customers may receive offers such as, "Buy one plate of idli, get one plate free." However, the hotel is reportedly paid only for the purchased plate, forcing it to bear the entire cost of the complimentary item.
Losses Due to Cancelled Orders
The association also alleged that hotels suffer financial losses when customers cancel orders after the food has already been prepared and handed over to the delivery partner. Since the food is not returned to the restaurant, hotels incur the full cost of preparing the order without receiving any payment. The association further claimed that, in some cases, cancelled food is consumed by delivery personnel, resulting in additional losses for restaurants.
Delayed Payments and Commission Deductions
Hotel owners have also raised concerns over delayed payments, alleging that funds are not credited to their accounts promptly even after orders are successfully prepared and dispatched. They further claimed that excessive or unexplained commission deductions are being made from the amounts payable to restaurants.
Association to Decide Future Course of Action
Frustrated by what it describes as persistent financial losses and unfair business practices, the Bengaluru Hotel Owners Association is expected to take a significant decision during its emergency meeting on Tuesday. The association has warned that if Swiggy fails to address its concerns and revise its policies, member hotels may completely halt food deliveries through the platform across Bengaluru.
Swiggy had not publicly responded to these specific allegations at the time of reporting.
