The Andhra Pradesh Hotels Association (APHA) has declared a statewide boycott of Swiggy starting October 14, 2024.
APHA President RV Swamy said their decision was a response to numerous unresolved grievances with the food delivery giant, primarily revolving around financial dealings and operational policies.
The grievances
Several restaurants reported that Swiggy holds their payouts for up to 12 days, putting a considerable financial strain on operations, especially for smaller establishments.
Swiggy is also being accused of imposing discounts without the consent of restaurant owners, which reduces their earnings and misleads customers about the cost of services.
The association highlighted that Swiggy charges high commissions and applies these on GST, a practice deemed illegal and unethical by the restaurant community.
Swiggy’s stringent refund policies are said to be causing restaurants to lose money when customers cancel orders after preparation.
Talks fail
Despite multiple negotiation attempts by the APHA, including three meetings with representatives from both Swiggy and Zomato, only Zomato showed a willingness to adjust their policies towards a more restaurant-friendly approach. Swiggy, however, remained steadfast in its business model, leading to the upcoming boycott.