Kochi Hotels competes with Swiggy & Zomato

Kerala Hotel and Restaurant Association (KHRA) to launch its own food delivery app to combat third party apps like Swiggy & Zomato. The mobile application titled ‘Rezoy’ was recently launched in Google Play Store and App Store and its services are presently available in parts of Kochi city. The KHRA has announced that the service of the app will soon roll out across Ernakulam district, followed by other districts in Kerala.

One of the major features which KHRA officials have highlighted is the low cost of food, when compared to other existing food aggregator apps. “Usually the other existing food aggregators charge heavy commission from the restaurants, ranging from 25 to 30 percent. For many restaurants, this has turned into a non-profitable factor, and what happens is that they are often forced to charge more for items, in order to make profit,” Manoharan, Liaison Officer of Rezoy and Ernakulam District Secretary of KHRA told TNM.

“Now with our own app, we only charge a nominal commission ranging from eight to 10 percent, and will be able to sell food at lower rates,” he added. The officials also say that the price of food while ordering online, will be the same as that of what is charged in the restaurant.

“Some aggregators are already on work to start their own kitchen to sell food. From the service of all these years, they have the precise data on people’s demands. So when this is rolled out, the restaurants are going to incur major loss. That is another reason why Rezoy was started,” added Manoharan.

Even restaurants and hotels that are not part of KHRA will also be able to use the app’s service. Rezoy also charges a one-time fee from the restaurants and hotels, depending on which the commission rate will be decided. If a hotel registers paying Rs 25,000, they will be charged only eight percent commission, if registered paying Rs 10,000, commission will be nine percent, and if Rs 5,000, commission will be 10 percent. The commission is also inclusive of GST, KHRA states.

“We are taking this because we wish to roll out this independently without any other outside investment. So until the company starts making profit, we can meet its expenses with the money from the registration,” adds the Liaison Officer.

According to the officials, there is a positive response for the application with hundreds of users already using it. “The restaurant owners are much excited about this and is extending our full cooperation,” says Muhammad Rameez, a resturant owner part of KHRA.