VIJAYAWADA: The tussle between food aggregator Swiggy and city hoteliers over high commission on orders came to an end after six days of boycott on Friday, said Vijayawada Hoteliers’ Association.
“Our campaign has restricted Swiggy from increasing the 18 per cent and 21 per cent commission charges to 21 per cent and 25 per cent, respectively. As per the negotiations, two contracts have been signed. Now, we will pay 18 per cent plus GST on orders of higher value and 21 per cent plus GST for lower value orders,” said Association secretary Sanjay Jain.
He added that the contracts will only be applicable for the next six months. The National Restaurants’ Association of India (NRAI), which is already in the process of discussing new rules with online portals, will design a new framework on the basis of suggestions given by hoteliers’ associations across the country on the parameters related to the business of online food delivery service.
Regarding the discounts offered, an amount of Rs 75, against the earlier Rs 100 as the maximum discount price, has been mutually accepted by Swiggy and the hoteliers. The change will be applicable from December 1. Packaging charge has also been settled at `10 per order.