Jaipur sweet shops pull out of Zomato, allege high commissions and opaque policies

Major sweet shops in Jaipur have stopped taking orders through Zomato, accusing the food-delivery platform of unethical practices and a lack of transparency. The Shri Halwai Samiti, an association representing around 60 prominent halwais and restaurants in the city, announced the indefinite boycott on [date not specified], saying the platform's current terms have become financially unviable for them.

Ajay Agarwal, proprietor of Laxmi Misthan Bhandar (LMB), which traces its origins to 1727, said Zomato initially positioned itself as a zero-commission logistics partner when it entered the market around 2015-16. Now, he said, commissions range from a minimum of 10-12 per cent to as high as 25 per cent. He also alleged that the platform pressures outlets into offering discounts and advertising, makes unjustified deductions, and runs promotional schemes without prior consent, leaving stores to absorb the cost.

The Samiti, founded in 1942, said it had submitted a formal representation to Zomato by email, seeking a reduction in what it calls unreasonable commissions and requesting a meeting. According to Agarwal, the company did not even acknowledge the communication. Samiti president Rajendra Rawat of Rawat Misthan Bhandar said they have tried multiple times to reach out through letters and emails without response. He questioned the varying commission rates charged to different businesses, saying such practices ultimately hurt customers.

Collectively, the member shops generate around Rs 50 lakh in daily business through Zomato alone, Agarwal said. While online demand has grown with tech-savvy younger customers, he warned that unless the platform addresses their concerns, they may have to shut down their online operations entirely. The Samiti has asked Zomato to rationalise commissions to a uniform rate for sweets and related categories, citing the city's price-sensitive consumers and intense local competition.

The boycott has drawn support from the national Federation of Sweets and Namkeen Manufacturers (FSNM), which has written to Zomato seeking a meeting. FSNM Director General Firoz Naqvi said the issues raised by Jaipur's mithai businesses, along with earlier concerns from Bengaluru restaurants, suggest the problems are not limited to one city. The federation noted that its members across the country have been discussing platform commissions, discounts, deductions, transparency, and customer-relationship terms.

Zomato has not yet responded to queries from the media.