Online food delivery services to stop in Kochi from Saturday

The Kerala Hotel and Restaurant Association cite high commission and GST rates as one of the many reasons why they have decided to stop associating with the delivery app promoters.
A Swiggy delivery man on his bike on the way to deliver food. (Photo | EPS)
A Swiggy delivery man on his bike on the way to deliver food. (Photo | EPS)

KOCHI: Come Saturday, and the food delivery boys, operating around the city for major players like Uber Eats, Swiggy and Zomato, won't be knocking at your doorsteps with the customary smile and the 'oh-so-delicious' food package. The recent decision by the Kerala Hotel and Restaurant Association (KHRA) to stop accepting online orders made through such apps, will put thousands of Kochiites who have taken an instant liking to the system for its ease and comfort, in the dock.  

"Ever since the introduction of such apps, we have always felt we had a backup plan for food. Even if we arrived late after a tiring day at work, we did not have to worry about the availability of food since we could order at any time," said Suji Pathur, a professional from Tripunithura. For people like Gokul Nath, who worked late night shifts, the online food delivery apps were a blessing in disguise. "We used to receive food at even 1 in the morning when the majority of the hotels are shut," he said.

Greeshma R, a retired teacher from Aluva says people took instantly to the apps as they found it extremely comfortable. "However, now that the hotels plan to boycott these apps, we will have to make do without them, which will be difficult initially, since we have got accustomed to such a fast lifestyle," she said.

Meanwhile, The Kerala Hotel and Restaurant Association cite high commission and GST rates as one of the many reasons why they have decided to stop associating with the delivery app promoters. KHRA President (Ernakulam district), Azeez Moosa said that the online app companies were charging 30 per cent commission from hotel owners and 18 per cent GST for every food order.

"The quality of the hotel and food we deliver is being compromised because delivery through these apps have to be made quickly. Also, it is a major loss for us as we have to provide food at a cheaper price through these apps," he said.

He added that the menu which is displayed through the online apps are not placed by the hoteliers alone."The special offers for certain dishes is not added by the respective hotels. Rather, they force it upon us which we do not prefer," said Azeez.

There are around 4,000 hotels under the Kerala Hotel and Restaurant Association in Ernakulam, out of which only 50 per cent take orders from online apps. "In the long run, the online delivery companies plan to set up their own online kitchen. This is a threat to hotels and the decision was taken unanimously by hotel owners," said Paulson John, who owns a restaurant at Angamaly. 

Azeez said that talks are being held with a few startups in order to set up an online app for the hotels. "We are planning talks and meeting with a few startups to discuss setting up an app so that it becomes convenient for the people to order food online. Either all the three companies must decide on a common commission or the respective hotel menu must be followed," he said.  

Meanwhile, senior officers with Swiggy and Zomato say that they have not yet been informed about the move by the KHRA to stop accepting their orders. So far we have received only positive response from the restaurants in Kerala.

The feedback has been positive," they said, adding that the hotels are making an incremental profit out of the sale of their dishes, without incurring any additional costs.  They also refuted statements they were charging high commission from hotels. "The commission rates have never gone above 25 per cent," an official said. 

Issues cited
Hotel and Restaurant owners say they are charged 30 per cent commission for every delivery by the online app companies. They added that the menu which is displayed through the online apps are not placed by the hoteliers alone. There are around 4,000 hotels under the Kerala Hotel and Restaurant Association in Ernakulam, out of which only 50 per cent take orders from online apps.

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