Bengaluru: Zomato has rolled out an OTP-based approval system for restaurant-funded discounts, while Swiggy’s top leadership is set to meet the Bangalore Hotels Association (BHA) on Friday, as Bengaluru hoteliers intensify pressure on food delivery platforms over discounts, promotions and payout deductions.The meeting is expected to be attended by Swiggy MD and group CEO Sriharsha Majety and Swiggy Food Marketplace CEO Rohit Kapoor. Representatives of the National Restaurant Association of India (NRAI) are also likely to participate, people aware of the matter said.The talks follow a meeting on Monday evening between senior Swiggy executives and BHA members, during which the company made a detailed presentation on its policies. However, restaurant owners said they are still waiting for concrete action.“The presentation was comprehensive. But hoteliers cannot keep getting only presentations,” one hotelier told TOI, requesting anonymity. “Restaurants want to know who approved a discount, who paid for it and why money was deducted from the payout.”According to restaurant owners, Zomato moved faster to address their concerns. Five or six senior Zomato executives flew in from Gurugram last Friday to meet Bengaluru hoteliers. Soon after, the company informed restaurant partners that any changes to Merchant Voucher Discounts (MVDs) would require OTP-based approval.MVDs are discounts funded by restaurants, while Zomato Value Discounts (ZVDs) are funded by Zomato. Under the new system, if a restaurant is required to bear the cost of a discount, it must first approve it through a one-time password.“Zomato was far more proactive,” another hotelier said. “Its senior leadership came from Gurugram, heard us out and introduced OTP approval. If restaurant money is being used for a discount, the restaurant should have to approve it.”Zomato has also assured restaurant partners that complaints relating to past wrongful deductions will be examined on an outlet-by-outlet basis. The issues are expected to be resolved through direct communication channels, including WhatsApp groups, people familiar with the discussions said.BHA flags Swiggy payout deductionsAhead of Friday’s meeting, BHA members have prepared a detailed breakdown of deductions in Swiggy payouts. These include commission, long-distance charges, payment collection charges, Swiggy One fees, Bolt fees, restaurant cancellation charges, restaurant-sponsored delivery fees, advertising spends, customer complaint refunds, GST, tax collected at source (TCS) and tax deducted at source (TDS).The association had earlier written to Majety seeking a meeting, alleging discounts were being applied without prior consent. It also raised concerns over advertising and promotional charges, service charges on GST, rising platform fees and inadequate transparency in payout statements.The BHA has warned that its members may stop accepting Swiggy orders from Aug 15 if the issues remain unresolved.
