Namakkal eateries stop accepting orders via food aggregators

NAMAKKAL: Eateries in Namakkal town and taluk stopped accepting online food orders via aggregators like Swiggy and Zomato from Tuesday. Additionally, they halted deliveries even for customers who had previously placed online orders.Owners of eateries in Namakkal town and taluk had already announced their decision to stop supplying food to online platforms like Swiggy and Zomato from July 1 as aggregating companies failed to provide reasonable prices to them.The Town and Taluk Hotels and Bakery Owners Association held an emergency meeting on June 23, chaired by its president M Ramkumar.During this meeting, it was highlighted that food aggregating companies impose indirect charges, including advertising fees, on restaurants which impact their profit. Association secretary Arulkumaran told reporters that online giants such as Zomato and Swiggy had different commission rates for each restaurant. "In Namakkal taluk alone, 85 eateries are involved in online sales, resulting in daily online food transactions worth Rs 10 lakh," he stated, noting that no agreements were reached in discussions with Zomato and Swiggy, leading to the indefinite suspension of taking orders from them.He said each establishment has a unique commission structure, and shop owners receive their payments a week after the sale, which is causing financial strain for them.

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