Meituan’s drone food deliveries on the rise

Meituan's drone food deliveries on the rise

Swiggy, one of India’s leading food delivery platforms, found itself in the midst of a controversy on Thursday as several social media users alleged that the app had overcharged them for food orders. However, Swiggy quickly responded, asserting that no customers had been overcharged and that the issue was attributed to a technical bug.

A spokesperson from Swiggy stated, “We confirm no customers have been overcharged and they have paid the correct amount. This was due to a tech bug, which we have fixed. We continue to deliver thousands of orders every minute to our customers.”

The issue first emerged when a user took to X (formerly Twitter) to report that Swiggy had charged an additional INR 3 for a food order made through the app. Deepak Shenoy, the founder and CEO of wealth management startup Capitalmind, also raised the same concern. He shared that while his bill should have been INR 255.6, he was presented with a bill of INR 259.

This incident triggered a wave of similar complaints from other users, with some describing it as a form of modern-day fraud.

In response to the controversy, Swiggy issued a clarification, stating that incorrect discount amounts were displayed in the order history page of users due to the technical bug. However, the company emphasized that customers had paid the correct amounts during the checkout process and were not overcharged.

“Some users may note incorrect discount amounts in their order history page. However, users have actually paid as per the prescribed discount amount during the checkout. Customers have paid the correct amount. This discrepancy in order history and actual paid value is due to a tech bug which our teams have fixed,” Swiggy stated on X.

Deepak Shenoy later acknowledged that the issue “might just be” a display error. He pointed out that the platform fee, originally INR 5, was discounted to INR 2 in his bill, explaining the variation.

During this period of scrutiny, users also raised concerns about Swiggy’s rounding-off mechanism for billing. Swiggy responded by explaining that they had “rounded off the billed amount to the nearest whole amount” in line with the guidelines issued by the Reserve Bank of India (RBI). This practice was intended to minimize inconvenience to the public and align with the prevalent rounding-off practices applicable to banks.

This incident comes at a time when both Swiggy and its competitor Zomato have introduced platform fees of INR 2-3, aiming to boost their revenues and strengthen their financial positions.

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