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Friday, November 15, 2024

Andhra Pradesh Hotels Association to boycott food delivery apps from October 14

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The Andhra Pradesh Hotels Association (APHA) has announced a statewide boycott of food delivery apps starting on October 14. This͏͏ decision͏͏ is͏͏ a͏͏ response͏͏ to͏͏ what͏͏ they͏͏ describe͏͏ as͏͏ unethical͏͏ business͏͏ practices͏͏ that͏͏ are͏͏ significantly͏͏ impacting͏͏ the͏͏ restaurant͏͏ industry.͏͏ It͏͏ follows͏͏ unsuccessful͏͏ negotiations͏͏ between͏͏ the͏͏ association͏͏ and͏͏ food͏͏ delivery͏͏ platforms͏͏ over͏͏ various͏͏ longstanding͏͏ issues͏͏ affecting͏͏ restaurant͏͏ owners.

Allegations͏͏ of͏͏ Misleading͏͏ Discounts:

APHA͏͏ has͏͏ alleged͏͏ that͏͏ a͏͏ food͏͏ delivery͏͏ platform͏͏ implements͏͏ steep͏͏ discounts͏͏ without͏͏ consent,͏͏ misleading͏͏ customers͏͏ into͏͏ thinking͏͏ these͏͏ offers͏͏ originate͏͏ from͏͏ the͏͏ restaurants.͏͏ These͏͏ discounts,͏͏ ranging͏͏ from͏͏ INR͏͏ 125͏͏ to͏͏ INR͏͏ 175,͏͏ have͏͏ resulted͏͏ in͏͏ substantial͏͏ revenue͏͏ losses͏͏ for͏͏ restaurants.͏͏ Additionally,͏͏ the͏͏ food͏͏ delivery͏͏ platforms͏͏ are͏͏ said͏͏ to͏͏ have͏͏ changed͏͏ menu͏͏ items͏͏ and͏͏ prices͏͏ without͏͏ restaurant͏͏ management’s͏͏ approval͏͏ and͏͏ introduced͏͏ deals͏͏ like͏͏ ‘buy͏͏ one͏͏ get͏͏ one͏͏ free,’͏͏ further͏͏ eroding͏͏ restaurant͏͏ profits.

Continue͏͏ Exploring:͏͏ Ordering͏͏ via͏͏ food delivery aggregators͏͏ costs͏͏ INR͏͏ 9,000-11,000͏͏ Cr͏͏ annually:͏͏ Report

According͏͏ to͏͏ a͏͏ press͏͏ release͏͏ from͏͏ APHA,͏͏ when͏͏ customers͏͏ cancel͏͏ orders͏͏ after͏͏ they͏͏ have͏͏ been͏͏ prepared,͏͏ the͏͏ apps͏͏ impose͏͏ strict͏͏ refund͏͏ policies͏͏ that͏͏ leave͏͏ restaurants͏͏ bearing͏͏ both͏͏ the͏͏ cost͏͏ of͏͏ the͏͏ food͏͏ and͏͏ the͏͏ loss͏͏ of͏͏ revenue.͏͏ Additionally,͏͏ restaurant͏͏ owners͏͏ face͏͏ exorbitant͏͏ promotional͏͏ fees.

Continue͏͏ Exploring:͏͏ Online͏͏ food delivery market͏͏ to͏͏ grow͏͏ 18%͏͏ YoY,͏͏ expected͏͏ to͏͏ reach͏͏ INR͏͏ 2͏͏ Lakh͏͏ Cr͏͏ by͏͏ 2030:͏͏ Bain-Swiggy͏͏ Report

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