Current and Ex-Employees Claim Swiggy Has Been Cheating Customers And Investors

So, for anybody who Googled Swiggy today, it seems like something has gone horribly wrong.

Swiggy
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Uh oh!

So it turns out the app that’s responsible for keeping you fed when you lied to your mom about making your own meals is having some troubles. So what happened? Turns out 4 employees of Swiggy, 2 current and 2 former have highlighted everything they believe is  wrong with the company in an incriminating tumblr post.

They detail that the food delivery services has been green lighting policies that are eating away at the ethics of their employees for quite some time. The post  is an extensive one, but there are a few basic points he covers which, if true, do raise a significant number of eyebrows. Like so many eyebrows.

SwiggySource

Swiggy Has Been Fudging Numbers To Deceive Customers And Investors

The blog claims that most of Swiggy’s positive reviews on app stores are bought and paid for while negative reviews are almost always taken down. Customer service would rather hide behind TnC’s rather than cater to their customer’s needs.

Further, the blog makes serious allegations about sales numbers, especially those for December 2016 and January 2017. Apparently, even though sales have dropped from December to January, the investor’s presentations don’t reflect that at all as seen in the below image. 

Swiggy
Source (L), (R)

Swiggy Has Been Lying To Restaurants

Swiggy signs on restaurants and then takes a commission from them so they can utilise the service. The blog states, however, that the commission is constantly increased every few months. In areas like Hyderabad and Bangalore, it has become such a large part of the restaurant’s revenue, that they pay more than their net margins.

“Most of these restaurant owners are small businessmen and they can’t see how they are being taken for a ride.  The worst part is that instead of helping these restaurants grow their business, we are trained to arm-twist them to increase our commissions every couple of months”

Swiggy
Source, Image Used For Representational Purposes

And even though the commission has been steadily rising, the management hopes to hit ~30% in 2022, which the blog says would really be more than these businesses can afford. Especially because only the smaller restaurants will end up paying 40% and higher, the bigger joints won’t go above 20. 

Swiggy Fabricated Data To Gain Media Coverage

The blog talks about how employees’ access to the order tracking dashboard was cut off only a few days before an article showed up in ET saying they’d crossed 4 million orders a month. Even though, the dashboards initially showed about 3 million a month.

Swiggy
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“How can that change suddenly? That kind of order volume growth is just not possible. We have heard that the order volumes are inflated by recording fake orders in our internal IT systems. We are already the leaders in the market, and we have so much money! The management just lied about these numbers and took away our win. And we had worked very hard for our win. This is absolute disrespect to all the employees who have worked hard to get close to 3 mn orders a month”

There are also stories about how higher management has fallen to a group of megalomaniacs and employees rarely receive the kinds of bonuses they are promised.

However, it is interesting to note that Swiggy itself has denied these claims. Insisting that the data is sound and that the information has been taken out of context with “mischievous” intent.

Clearly, the entirety of the matter is still waiting to come to light.

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Posted by

Mehernaz Patel

"Her Jokes made me Udhas" -Pankaj

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