Zomato Pay, Swiggy Offer Against Interest: Restaurants Association

Zomato Pay is a payment service offered by Zomato through an electronic payment mechanism.

New Delhi:

The National Restaurant Association of India has written an advisory to its members against Zomato Pay and Swiggy Diner discount programs, stating that these are against the interests of restaurant owners.

The advisory alleges that ‘middlemen’ are making money at the expense of Zomato and Swiggy restaurants, which essentially offer discounts for signing up to Zomato Pay and Swiggy Diner programs and on every transaction on these platforms. Also pay commission fee.

“Zomato Pay and Swiggy Diner both work comprehensively on the same formulation – no cost/membership fee to the customer to participate; essentially offering a 15-40 percent discount to the restaurant to be part of the program Should do it,” NRAI wrote to its members.

Further, it said, “restaurants will have to mandatorily pay commission in the range of 4-12 per cent for Zomato or Swiggy on every transaction made through the respective payment gateway”, while competing payment gateway charges only 1- are 1.5 percent.

NRAI alleged that the restaurant “should offer discounts to anyone wishing to pay through Zomato Pay or Swiggy Diner, even if the customer has searched for the restaurant on Zomato/Swiggy or simply drove it automatically.” Gone” and the payment is on a weekly basis.

“The basic question here is why should a restaurant pay a commission to a middleman to give a discount to its own customer?” NRAI asked.

Zomato Pay is a payment service offered by Zomato through an electronic payment mechanism through which its customers can pay for orders to the merchant through the Zomato platform.

Swiggy Diner, on the other hand, is an offering from Swiggy in the dine-in segment, which allows its customers to make dining out table reservations with discounted offers.

When contacted, a Zomato spokesperson did not comment on the specific issues raised by NRAI, but said, “With our new food product, being in Hyderabad for a few weeks now and delivering good results, we are confident that we will be able to achieve our goals.” Will create tremendous value and growth for the industry.” “We look forward to working with progressive restaurants that see the bigger picture,” the spokesperson added. Swiggy did not comment when reached for its response. PTI RKL DRR

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