Food delivery app Swiggy was fined around ₹35,000 for overcharging its ‘Swiggy One membership’ customer in Hyderabad by inflating the delivery distance. In its order, the District Consumer Disputes Redressal Commission in Hyderabad ruled against Swiggy, finding it guilty of inflating its delivery charges, reported Times of India.
Here’s what happened
Emmadi Suresh Babu purchased a ‘Swiggy One membership’, which offers free delivery charges within a specific distance. On November 1, when he placed an order, Swiggy reportedly raised the delivery distance from 9.7 kilometres to 14 kilometres, resulting in a ₹103 delivery fee.
Following this, Emmadi filed a complaint. The District Consumer Disputes Redressal Commission, after reviewing evidence, including Google Maps screenshots provided by Emmadi, observed a significant increase in the delivery distance.
The report further stated that Swiggy did not attend the hearings, leading the court to proceed ex-parte.
What fine did the court levy on Swiggy?
The commission ordered Swiggy to pay the customer ₹350.48 with an interest of 9 per cent from the complaint filing date and reimburse the ₹103 delivery charge.
Additionally, Swiggy was ordered to pay ₹5,000 for the mental distress and inconvenience caused to the customer and an additional ₹5,000 for litigation costs.
The commission also instructed Swiggy to stop inflating delivery distances for Swiggy One members.
Furthermore, Swiggy was fined ₹25,000 in punitive damages, to be deposited into the consumer welfare fund of the Ranga Reddy district commission, TOI reported.
Swiggy raises platform fee
Ahead of the Hindu festival of Diwali, Swiggy raised the platform fee to ₹10 from ₹6. Zomato also increased its platform fee from ₹7 to ₹10.
In contrast, hyperlocal e-commerce app magicpin slashed its platform charges to ₹5 per delivery, a top company official said on Sunday, reported PTI.
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