1 hr ago
Top Jaipur Halwais Boycott Zomato Over Rising Commissions
Many famous sweet shops in Jaipur have stopped using Zomato.
The shop owners say Zomato charges them large commissions on orders.
They also say they must pay for discounts and advertising.
Some owners believe these costs make it too difficult to earn money.
They want Zomato to create a clear and fair commission system.
The shopkeepers say they contacted Zomato but did not receive a formal response.
A national sweets industry group has also asked Zomato for a meeting.
Until the disagreement is settled, many Jaipur sweet shops may not be available on Zomato.
Jaipur’s Shri Halwai Samiti says leading sweet shops are boycotting Zomato over commissions and related costs.
Vendors say Zomato’s commission rose from zero in 2015–16 to roughly 10–25%, with sweet vendors citing rates as high as 22%.
Shop owners also object to forced discounts, advertising expenses, unilateral promotions, and unexplained deductions.
The Samiti says Zomato has not formally responded despite written communications and an expected meeting in early August.
The Federation of Sweets and Namkeen Manufacturers has requested talks, saying similar vendor concerns have emerged beyond Jaipur.
- Who
- The Shri Halwai Samiti, including several major Jaipur sweet brands, and Zomato; the Federation of Sweets and Namkeen Manufacturers is also seeking talks.
- What
- Jaipur sweet shops are boycotting Zomato over commissions, discounts, advertising costs, deductions, and a lack of transparency.
- Where
- Jaipur, with broader concerns reported by the Federation of Sweets and Namkeen Manufacturers and vendor pushback in Bengaluru.
- When
- The commission concerns date to 2015–16, while the Samiti’s recent communications occurred over the past month; no exact boycott date is stated.
- Why
- Vendors want a rationalized, uniform commission structure and changes to promotional costs and deductions they consider economically unviable or unjustified.
Sweet-shop vendors
Zomato
Commission levels
Sweet-shop vendors
Vendors say commissions of roughly 10–25%, including rates as high as 22% for sweet sellers, are economically unviable in a highly competitive business.
Zomato
Zomato’s position on the commission rates and the boycott is not stated in the article.
Discounts and deductions
Sweet-shop vendors
Shop owners say they are pressured to fund discounts and advertising, must honor unilateral offers, and face unjustified deductions.
Zomato
Zomato’s response to these allegations is not stated in the article.
Resolving the dispute
Sweet-shop vendors
The Shri Halwai Samiti says it will continue the boycott until Zomato agrees to a rationalized, uniform commission structure.
Zomato
The Samiti reported that Zomato had not formally responded to its communications; no detailed resolution proposal from Zomato is provided.
Key facts
- Commission history
- Ajay Agarwal said Zomato began in 2015–16 with zero commission and later moved to 10–12% at minimum, up to 25%.
- Sweet-vendor rate
- Shri Halwai Samiti president Rajendra Rawat said commissions have reached as high as 22% for sweet vendors since 2016.
- Additional concerns
- Vendors cited pressure to offer discounts and advertising, unilateral promotions, forced promotional costs, and unexplained deductions.
- Requested solution
- The Samiti is demanding a rationalized, uniform commission structure.
- Zomato response
- The Samiti said it received no formal response despite written communications and an assurance of a meeting in early August.
- Industry involvement
- The Federation of Sweets and Namkeen Manufacturers sent Zomato a letter requesting a meeting over wider commercial and operational concerns.
- Customer impact
- Many of Jaipur’s legacy sweet brands will remain unavailable on Zomato while the dispute continues.
Quotes
Rajendra Rawat
President of the Shri Halwai Samiti
“In the sweet business, there is intense competition on pricing. Such a commission is economically unviable for shopkeepers”
businesstoday.in
“Now it is up to a minimum of 10–12 per cent to 25 per cent”
businesstoday.in
Sources
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