On 4 October 2024, the Andhra Pradesh Hotels Association (APHA) made an announcement to boycott Swiggy services in the state. According to the announcement made by Hotels Association President RV Swamy and Committee Convenor Ramana Rao, the food delivery app will be boycotted from 14 October. The decision had been made due to Swiggy’s failure of timely payments to restaurants and other food outlets.
Discussions were held with both Zomato and Swiggy, food delivery platforms, regarding various issues and concerns of hotel owners. While Zomato is in favour of creating more restaurant-friendly policies and agreed to the demands and conditions, Swiggy failed to do so leading to an agitation among the APHA members.
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Swiggy and Zomato started operating in Andhra Pradesh eight years ago with zero commission fees from restaurants. However, according to State President R V Swamy, restaurants were losing 40% to 60% of their menu prices, due to the “unethical practices of Swiggy”.
APHA members also mentioned that discounts are being applied to selective restaurants and earnings are being deducted from the hotel’s revenues without their knowledge.
They have accused Swiggy of making changes in menus without consent from the restaurants and selling the items at lower prices. Sometimes restaurants also have to bear the losses due to the refund policies of Swiggy as neither the customers nor the restaurants get the refunded money. Owing to these reasons, hotels came together to boycott Swiggy in Andhra Pradesh.
According to the fiscal year 2024 reports, Swiggy had a Rs 2,359 crore net loss in FY24. However, it managed to reduce the net loss by 44% from Rs 4,179 crore in FY 23. The company also saw a revenue growth of 36% from Rs 8,265 crore to Rs 11, 247 crore compared to the last year.
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