India

Jaipur Sweet Shops Halt Zomato Deliveries Over Commission and Transparency Disputes

By Hamza Khan

Prominent sweet shop owners in Jaipur have suspended their partnership with food delivery platform Zomato indefinitely, alleging unethical business practices and lack of transparency. The decision was announced by Shri Halwai Samiti, an organization representing the city's leading halwais, which stated that Zomato's current practices have become financially unsustainable for their members.

Ajay Agarwal, owner of Laxmi Misthan Bhandar (LMB), a shop dating back to 1727, said Zomato initially positioned itself as a delivery logistics partner charging zero commission when it launched in 2015-2016. Since then, commissions have risen to between 10 and 25 percent. Agarwal also cited additional pressures, including demands for discounts, advertising costs, unexplained deductions, and unannounced promotional schemes that shops are required to honor.

The Indian Express reached out to Zomato for comment, and a company representative requested additional time to respond.

According to the Samiti, which was founded in 1942, Zomato held a meeting with the group last month and promised to address these issues promptly. The Samiti subsequently sent a formal email to Zomato demanding lower commission rates and requesting a follow-up meeting, but received no response. "There has been no acknowledgement, let alone a resolution," Agarwal said.

Rajendra Rawat, president of the Samiti and owner of Rawat Misthan Bhandar (RMB), said the group had attempted to contact Zomato multiple times through letters and emails without any reply. He criticized the inconsistency in commission rates across different businesses, noting that charging 25 percent from one vendor and 35 percent from another ultimately burdens customers. "If reputed businessmen are saying something, you have to listen," he said.

The Samiti comprises around 60 well-known sweet shops and restaurants in Jaipur, including LMB, RMB, Bombay Misthan Bhandar, Doodh Misthan Bhandar, Kanha, Sodhani Sweets, Bhagat Mishthan Bhandar, Agarwal Caterers, Kanji, and Kesar Sweets. Agarwal noted that these businesses collectively generate approximately Rs 50 lakh in daily sales through Zomato alone. He added that while online sales have grown due to a tech-savvy younger generation, the current situation leaves shop owners with little choice but to either resolve the dispute or discontinue their online business with Zomato entirely.

Members of the Samiti have asked Zomato to standardize commission rates for sweets and related product categories, pointing to the distinct pricing structures and heightened competition among sweet shops in the city. They noted that this, combined with highly price-sensitive customers, has resulted in comparatively low online sweet sales in Jaipur. The group has expressed willingness to engage in constructive dialogue with the company.

In the wake of the boycott, the Federation of Sweets and Namkeen Manufacturers (FSNM), a national body, has also written to Zomato requesting a meeting to discuss commercial and operational concerns raised by its members, which include mithai, namkeen, bakery, and other food businesses using the platform.

FSNM Director General Firoz Naqvi said that similar concerns previously reported among restaurant businesses in Bengaluru, combined with the recent collective action in Jaipur, suggest that these issues extend beyond a single business or city. He noted that FSNM members nationwide have increasingly discussed matters related to commissions, platform costs, discount programs, deductions, settlement processes, transparency, and other commercial terms tied to food-delivery platforms.