BENGALURU: Hotels in Bengaluru have threatened to suspend their association with food delivery platform Swiggy from August 15, alleging unfair deductions, lack of transparency in payments and unauthorised advertising charges.
The Bangalore Hotels Association (BHA) on Wednesday said it, along with the Karnataka State Hotels Association (KSHA), National Restaurant Association of India (NRAI), Karnataka Bar and Restaurant Association (KBSA) and other industry bodies, will stop accepting orders through Swiggy if the issues are not resolved.
The association alleged that Swiggy is deducting charges for advertisements, including Cost Per Click and Cost Per Action/Acquisition and promoted ads, from hotel owners’ accounts without obtaining prior written or digital consent. It demanded that the platform introduce a ‘one-click opt-out’ option, allowing restaurants to discontinue advertisements any time without incurring further charges.
Hoteliers: No transparency in Swiggy a/c statements
The hotel body claimed that Swiggy’s payment statements lacked transparency, making it difficult for restaurant owners to reconcile transactions. It sought a detailed break-up of all deductions, including commission, GST, advertising charges, offers and promotional costs.
It objected to levying of service charges on the GST amount collected from customers, stating that the tax is payable to the government and should not attract additional charges recoverable from restaurants.
It stated that unnecessary deductions and discrepancies in the accounting system have resulted in restaurants receiving less than 50% of the billed order value, causing severe financial stress.
The association said it held several rounds of discussions with Swiggy representatives, who assured them of addressing the issues. But the problems persist, they charged.The hotel industry has given Swiggy “a final opportunity” to resolve the grievances and ensure transparent and fair business practices. Failing this, the member associations said they will discontinue business with the platform from August 15 and make alternative arrangements to minimise inconvenience to customers.