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By Vaishvedhidha | Aug 27, 2019 01:29 PM

The National Restaurant Association of India (NRAI) had earlier waged a war against discounts offered by food delivery apps and has now asked them to cut the discount.

Swiggy, Zomato, Uber Eats may end discounts and offers on food order

The NRAI wrote a letter to Swiggy, Zomato, Uber Eats and Food Panda on Monday to look into the issues and resolve them. In the letter, NRAI has said that, operators felt resentment against forced discounts and uneven commisiion structure.

"There was a high demand for immediately extending the #Logout movement to the delivery vertical as well. However, our responsibility as an industry body compelled us to engage in dialogue first," stated the letter.

"Discounts are a privilege and are extended on occasions. However, in the current environment, deep discounts, ranging from 30-70 per cent, are being deployed 365 days of delivery platforms," the letter continued, explaining the issues with huge discounts. They said if affects the market and doesn't benefit the industry. They also said that discounts are mostly funded by restaurants.

They also spoke about commission charges. "These commissions or charges are not standard by any nature, rather they are exploitative and bereft of rationale. We request you to create a transparent system of commission or charges based on certain logical metrics such as AOV (Average Order Value), Volume of Business etc," the letter further said.

Anurag Katriar, Head of NRAI Mumbai Chapter, said, "Let me reiterate that we are not against the technology platforms, but our concerns are largely around these aggregators misusing their dominant position to indulge in predatory behaviour; commercially and in forming the terms of engagement," reports Times Now.