Food apps getting bitter

about 2 years ago
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Why do all good things attract the attention of the wrong kind of people????

Swiggy, Foodpanda, Zomato, Uber Eats are all good things which have happened to people; we can order from almost any small restaurant that we fancy and that too, sometimes at locations where many restaurants do not ever deliver.

Food aggregators are good but the state of Kerala has taken an objection and they are getting banned from 1st Dec. Members of the Kerala Hotel and Restaurant Association (KHRA) has decided to boycott the aggregators because it fears it will do to the restaurants what Uber and Ola did to the drivers - initially help widen their reach but eventually kill their earnings, especially through heavy discounting.

Their main objection is to the hefty commission that they charge. Uber Eats and Swiggy take a 33% commission and Zomato charges around 22%. They want this commission to come down to 10% and only then will they be allowed to function.

Boycotting is not the solution. Discounts actually help drive up the volumes for restaurants and lead to savings for the customers. More importantly, food apps add the last-mile connectivity which is extremely critical. This helps restaurants cut down real estate and staff costs.

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