Zomato News: Is online dining more expensive than hotels? Clean chit to Zomato from CCI; ‘This’ reason became important!

• Is online dining more expensive than hotels?
• Clean chit to Zomato from CCI
• This is the reason why it is important!

Zomato News: Nowadays, most people order food through online food delivery apps. You can also order food online. If you have ever noticed while ordering food online that food is expensive on apps and cheaper in restaurants, then this news is very important for you.

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A consumer had filed a complaint with the Competition Commission of India i.e. CCI against Zomato regarding this issue. But after investigating the matter, the CCI dismissed the complaint filed by the customer giving relief to the company. CCI said online food delivery and buying food directly from restaurants are two different business models. Hence, the prices of the two cannot be directly compared.

What exactly happened?

A customer complained that the cost of a meal ordered online was significantly higher than the price at a restaurant. He said that a meal at the restaurant cost ₹105, while on the same restaurant’s app, he was seeing a price of ₹198. The customer alleged that the restaurant was overcharging customers through its app due to increased menu prices, platform fees, delivery charges and taxes. He also said that because of Zomato’s commission, the restaurant had to increase the price of food on its app.

Why is online dining expensive?

Online orders include delivery costs and other services such as platforms.
The convenience of ordering food at home increases prices.
Taxes, delivery charges and platform fees also add to the total bill.
Food delivery companies take a commission from restaurants, which restaurants often compensate by increasing prices through their apps.

CCI gave clean chit on what basis?

Consumers willingly pay higher prices for their convenience, CCI said.
All information like platform fees, delivery charges and taxes are shown to the customer before payment.
The customer is given the option to cancel the order until final payment is made.
During the investigation, the CCI found no evidence of misuse of its app by Zomato.

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