Hotel, restaurant association asks Zomato, Swiggy to reduce commission charges on takeaways

The Federation of Hotel and Restaurant Associations of India (FHRAI) requested Swiggy and Zomato to reduce commission charges on takeaway services as the hospitality sector struggles to get back on its feet due to coronavirus pandemic impact, said a Financial Express report.

Writing to Swiggy CEO Sriharsha Majety and Zomato’s founder and CEO Deepinder Goyal, the association asked the food delivery apps to decrease the commission charges by 5 per cent with retrospective effect from May 2020.

Also Read: Food delivery volumes have reached pre-Covid-19 level, says Zomato CEO

Currently, the commission rates range from 18-40 per cent of the order value, depending on the order size and the type of restaurant.

Within the restaurant business, dine-in services took a severe hit during the pandemic as people stopped going out to eat. Instead delivery services picked up.

The FHRAI wrote, “Due to the surging numbers of infections all over the country, the recovery process is going to be a long drawn out affair for the sector, co-existent with the increased focus on health, hygiene and introduction of preventive vaccine against the pandemic.”

Zomato recently announced that food delivery volumes have reached pre-Covid-19 levels in the country and is expecting a growth of 15-25 per cent in the following months.