Mobile Internet

Swiggy and Zomato blacklisted in Ahmedabad as the boycott of the companies continues

Food-tech in India is a field which is very volatile but has a great future. The food-tech industry basically consists of four companies as of now. These are the only companies which currently have a market share worth mentioning. Zomato and Swiggy out of those four companies are the major market shareholders and Uber’s UberEats and Ola’s Foodpanda are the other companies which are doing okay in this business.

Zomato and Swiggy are the leaders among those companies. Swiggy leads the food-tech business as it is the most trusted brand for the customers. There was a survey conducted by a company named RedSeer consulting which revealed that Swiggy is the best food-tech company out there as it scored a brilliant 96 in its survey. Zomato lost by a huge margin in the trust department and this was majorly due to its scandalous year in 2018. Apart from this, UberEats and Foodpanda shared the third and fourth spot respectively.

In spite of this, there are restaurants fighting against these companies for various reasons. This fight was going on for some time now as there are more than 500 restaurants which have boycotted Swiggy and have threatened Zomato of the same for charging high commissions. This has happened in Ahmedabad. Those 500 restaurants and hotels have blacklisted Swiggy for a reason it is not so well known for. The business practices aren’t good enough for the restaurants and this has turned out to be the reason for blacklisting.

The accusations are on the lines of high commissions asked by Swiggy. While the food delivery company has also asked the restaurants to increase the prices by 20% so that they could charge a higher commission. The boycott has been going on from 11th January 2019. The boycott entered its second week and nothing concrete is coming out.

The restaurants want the commissioned lowered, first and the foremost. The other thing they want is the Swiggy to pay 100% price of the dish when the consumer cancels their order. Swiggy has already given up on the 100% payment after cancellation thing and Zomato, which has been dragged to the table have agreed to give restaurants delivering rights where they will deliver their own food if they want.

Swiggy and Zomato complete almost 80k orders together every single day. Ahmedabad is one of the most populated cities in India and has a lot of restaurants to eat. That said, the representative of both the companies have said that their business is back on track in the city but the boycott is still on. The commission needs to be lowered for the restaurants to remove the food-tech companies from the blacklist.

-Unmesh Phule

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