Swiggy admits online food is costlier than restaurants

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Updated: Jan 25, 2020 8:01 PM

Food aggregator Swiggy has acknowledged the difference between the food prices in the restaurant and that displayed online as several users point out the same on social media platforms.

sSwiggy is one of the dominant aggregators in Indian online food delivery market.

Food aggregator Swiggy has acknowledged the difference between the food prices in the restaurant and that displayed online as several users point out the same on social media platforms. However, the company denied its involvement in hiking rates and said “we play no part in the invoice … all components of the bill in the invoice are levied by the restaurant. If the restaurant is willing they may charge it differently,” it said in a reply to a customer who pointed out the difference in pricing on Twitter. The unicorn food aggregator also said that the charges and other taxes levied on the platform are the prerogative of respective restaurants and is “passed on without any intervention from our end. All components of the bill in the invoice are levied by the restaurant only and we, by ourselves, don’t amend anything”.

Swiggy was responding to a series of tweets which was joined by several Twitter users. One user alleged that prices of food items on the food aggregator’s platforms are 25-50% higher than the actual price of the same item at the restaurant. Food delivery applications take commissions from restaurants for listing them.

“We do not onboard restaurants who are keen to list higher online menu prices. However, the restaurants ultimately control their own menu pricing. With over 150 different dishes across 150,000 restaurants which translates to over 2.25 cr menu items, it is challenging to automate any online vs offline price comparison. When we come across instances of restaurants with significant pricing differences, we immediately advise them to adjust their pricing to prevent erosion of customers’ trust,” a Swiggy spokesperson told Financial Express Online.

Meanwhile, Swiggy’s top rival in the country — Zomato — has acquired the Indian business of Uber Eats. The American online food ordering company struggled to stay afloat in India as the market is dominated by Swiggy and Zomato. With Zomato’s acquisition of Uber Eats, Uber will have a 9.99% stake in the unicorn company founded by Deepinder Goyal. Uber Eats has also started to redirect its customers, restaurants, delivery partners to Zomato as the former has effectively discontinued its own operations in India. Zomato had recently secured a $150 million funding from investor Ant Financial, an Alibaba affiliate. 

This story was updated with the comment from Swiggy.

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