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Restaurants withdrawing from Food Tech Start-Ups

30/01/2018

swiggy-logoHigh commissions and irregular deliveries are becoming the major reasons for the withdrawal of restaurants from various food tech start-ups such as Swiggy and Shaowfax.

High fees upto25% has been charged by delivery platforms, which made it inconvenient for the restaurants. They also complaints about the delayed pickups, scruffily dressed delivery boys and degraded standards of food delivery.

R&D at TGI Friday’s associate vice-president Ashutosh Jha opines that, “The basic problem with the industry is that they fail to deliver an experience similar to what we give our customers in the restaurant.” The restaurants have collaboration with Shadowfax and FastOx.

s1No comments have been made by the startups so far upon the issue. According to the repost of Morgan Stanley the food aggregation business in India are expected to grow by $4.4 billion by 2020, implying a 134% annual growth. The inclined growth is also posing a new challenge of retaining clients.

 

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