Sweet Shops in Jaipur Boycott Zomato Over Commission Disputes

9:02 PM ETDeveloping

Health Desk

In Short: Sweet shops in Jaipur have indefinitely boycotted Zomato, citing issues with commissions and lack of transparency.

Sweet shops in Jaipur have indefinitely boycotted Zomato, citing issues with commissions and lack of transparency. According to Rajendra Rawat, president of the Samiti, a trade body established in 1942, Zomato has assured to resolve the problems but has not responded to multiple letters and emails from the stores. The Samiti, which represents over 500 sweet shops, claims that Zomato's schemes and discounts are causing financial strain, and they are seeking a uniform commission rate for sweets and related categories.

The Indian Express reports that the Samiti has accused Zomato of 'unethical practices' and 'lack of transparency.' The boycott, which began last month, is part of a broader concern among food-delivery platform users. Firoz Naqvi, Director General of the Federation of Small and Medium Enterprises (FSNM), stated that similar issues are being reported from Bengaluru and other cities, indicating a wider problem.

Rajendra Rawat, a proprietor of Rawat Misthan Bhandar, said that together, the stores do a business of about Rs 50 lakh daily with just Zomato alone. The Samiti has requested Zomato to rationalise its commissions to a uniform percentage for sweets and related categories, citing the unique pricing dynamics and intense competition faced by sweet shops in the city. Zomato has not yet responded to the Samiti's demands.

The Indian Express also reported that Zomato has not acknowledged the Samiti's formal representation via email, demanding a reduction in 'unreasonable commissions' and a meeting. Zomato has not yet provided a response to these allegations.

What's still developing

“Beyond this, there is pressure for discounts and advertising on their platforms, there are unjustified deductions; they also run schemes and give discounts without informing (the establishment). And the stores have to honour these discounts,” he said, decrying the “lack of transparency”.
“The recent developments involving restaurant businesses in Bengaluru, followed by concerns and collective action now being reported to us directly by leading mithai businesses in Jaipur, indicate that these issues may no longer be restricted to an individual business or a particular city,” FSNM said through its Director General Firoz Naqvi.
“Over the past few weeks, we have also witnessed considerable discussion among FSNM members across the country regarding commissions and overall platform costs, discounts and promotional programmes, deductions and settlements, transparency, customer relationships and other commercial terms associated with food-delivery platforms,” it said.
The Indian Express sent a questionnaire to Zomato where a representative sought time to respond.
Based in Jaipur, he provides high-authority coverage on the state's governance, legal landscape, and social issues, directly supporting the "Journalism of Courage" ethos of the publication.

Sources

The Indian Expresslink