AHAR to boycott Zomato Gold on food delivery: Report

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The Indian Hotel and Restaurant Association (AHAR), on November 25, said that it was boycotting Zomato Gold on food delivery, The Economic Times reported.

The restaurant body, which has around 8,000 members across India, has expressed concerns over extension of Zomato Gold over to food delivery, along with allegations of deep discounting, delivery from illegal kitchens and a lack of delivery executives, the paper reported.

Moneycontrol could not independently verify the report.

The move comes at a time when the food aggregator has already been drawing flak over the steep discounts offered on its dine-in and delivery services.

As per the report, the restaurant body has said that commissions as high as 22 percent to 25 percent are charged by the aggregator. This, it says, puts restaurants and hotels in a position where they are forced to raise prices. The burden of the increase in prices is ultimately borne by the customers, AHAR added.

Earlier in August, a large number of restaurants went off food delivery platforms like Zomato and EazyDiner. The #LogOut campaign, led by the National Restaurants Association of India (NRAI), was also based on similar concerns pertaining to excessive discounts and other unfair practices on the part of the aggregators.