Tag: Food Delivery App

Highlights The consumer court ruled against Swiggy for unfair trade practices. Ordered the platform to pay Rs 35,453 to the complainant for inflated delivery distances. Swiggy has 45 days to comply with the ruling. It also has to deposit Rs 25,000 as punitive damages into the Consumer Welfare Fund. Hyderabad consumer court fines Swiggy for inflated delivery. (Image credit - Unknown) The District Consumer Disputes Redressal Commission in Ranga Reddy has ruled against Swiggy for unfair trade practices involving inflated delivery distances leading to extra charges for a customer. The commission found Swiggy guilty and ordered the company to pay a total of Rs 35,453 to the complainant. Here’s the complete story. Emmadi Suresh Babu, who lives in Hyderabad, filed the complaint against Swiggy after he bought a “Swiggy One membership” that promises free delivery within a specified distance. On 1st November 2023, when Babu ordered food from Swiggy, it allegedly increased the delivery distance from 9.7 kilometres to 14 kilometres, which resulted in a delivery fee of Rs 103 despite the membership benefits. After Bubu’s complaint, the consumer court examined evidence including screenshots from Google Maps provided by Babu. This evidence showed a notable increase in the delivery distance. Swiggy did not attend the hearings allowing the court to proceed based on Babu's affidavit and supporting documents. In the order, the consumer court mandated Swiggy to refund Rs 350.48 with 9 per cent interest from the date of filing. Apart from this, the app will also have to refund the additional Rs 103 charged for delivery. The court also ordered Swiggy to pay Rs 5,000 for mental distress and inconvenience, cover Rs 5,000 in litigation costs and cease inflating delivery distances for Swiggy One members. Moreover, Swiggy is ordered to deposit Rs 25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The company has 45 days to comply with this ruling. In another instance highlighted on social media, the platform allegedly increased its platform fee from ₹6 to ₹10 just head the Hindu festival of Diwali. Similarly, Zomato also raised its platform fee from ₹7 to ₹10 before the festival period. Many users on social media highlighted that contrary to Swiggy and Zomato, Magicpin has lowered its platform charges to ₹5 per delivery as confirmed by a company official as well. In other news, Swiggy is also preparing for its initial public offering (IPO) set to launch on November 6. The platform is aiming to raise over Rs 11,000 crore from the primary market as the IPO has generated substantial interest from investors with bids from Norges, Norway’s sovereign wealth fund and Fidelity reportedly exceeding $15 billion, which is 25 times the $605 million portion designated for such investors. FAQS Q1. Why was Swiggy ordered to pay Rs 35,453? Answer. The District Consumer Disputes Redressal Commission found Swiggy guilty of unfair trade practices involving inflated delivery distances, leading to extra charges for a customer. Q2. What did Swiggy allegedly do to overcharge the customer? Answer. Swiggy allegedly increased the delivery distance from 9.7 kilometres to 14 kilometres, resulting in a delivery fee of Rs 103 despite the Swiggy One membership benefits. Q3. What penalties were imposed on Swiggy by the consumer court? Answer. Apart from refunding the overcharged amounts, Swiggy was ordered to pay Rs 5,000 for mental distress and inconvenience, cover Rs 5,000 in litigation costs, and deposit Rs 25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. Also Read : Swiggy and Zomato Cut Free Delivery Radius to 7km for Premium Members: See How Users Reacted Also Read : Food Delivery Apps New Year Surge in India

Tag: Food Delivery App

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