Hyderabad: Over 2,000 hotels in Telangana have threatened to cancel their business dealings with food service aggregators, if they don't do away with unreasonable commissions and reduce commission payouts.
The TS Hotel Association, which represents the interests of hoteliers in the state, said all agreements with food aggregators will be cancelled if they don't remove unreasonable discounts offered to customers, and review agreements to reduce the commission percentages.
Giving in to hoteliers, Zomato has agreed to review its current policy with its restaurants from August 20.
“We recently rolled out a policy to align the interest of users, Zomato and restaurants towards better user experiences. But it wasn't received well by some segments of the industry. So it is our job to listen to you and make the right amends,” said Zomato CEO Rakesh Ranjan. He told the hoteliers association that Zomato will rework the policy based on the feedback received from them. TS Hotel Association joint secretary Sampath T. said, “We are all one and united and have agreed to log out of the food delivery applications. But Zomato has agreed to reconsider their schemes. We will wait for their response and decide our future course of action later.” “Our whole point is that neither the restaurants nor the consumers are the benefiting from such unfair trade practices. The food apps are charging heavy delivery charges and unfair commission from customers,” Mr Sampath said.
