Business Standard

Disruptors face disruption, Oyo to Swiggy get flak from restaurants, hotels

Online hospitality aggregators face growing discontent from restaurants and hotels over commissions and pricing power

Hoteliers and restaurant owners worry that the regular offers and promo discounts offered by well-funded apps determine the demand trend
Premium

Hoteliers and restaurant owners worry that the regular offers and promo discounts offered by well-funded apps determine the demand trend

Ajay Modi New Delhi
Three years ago, Rajiv Kumar (name changed), a Noida-based restaurant owner was happy to find a platform in Zomato to market his produce. The offer was compelling: no commission was charged but Kumar had to make deliveries using his own staff. Things changed as the number of orders through the online food delivery platform expanded. Kumar was subsequently asked to pay Rs 500 a month while managing deliveries on his own. Today, Kumar pays Zomato a flat fee of Rs 60 for every order it generates, inclusive of a delivery charge. 

He says the fee works out to a commission of

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 31 2018 | 9:22 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com