The National Restaurant Association of India (NRAI) on Thursday voiced strong opposition to food delivery giants Zomato and Swiggy entering private-label food delivery through their quick-commerce platforms. The industry body, representing over five lakh restaurants in India, argued that this move violates marketplace neutrality and undermines fair competition, posing a significant threat to the survival of restaurants nationwide.
The NRAI accused Zomato and Swiggy of leveraging their dominant market positions and access to restaurant data to launch private-label food products either directly or through subsidiaries like Blinkit Bistro and Swiggy Cafe/Snacc. “This strategy cannibalises the business of restaurants that rely on these platforms,” the NRAI stated, adding that it raises legal concerns under the Copyright Act and related laws.
Sagar Daryani, President of the NRAI, expressed disappointment and said, “We were always given verbal assurances by the aggregators that they would never resort to private labelling. This is a breach of trust.” He also highlighted the issue of consumer masking, noting that restaurants do not have access to customer data collected by the platforms.
Also Read EatSure becomes first platform to launch multi-restaurant ordering One bite at a time: India’s love for Biryani triumphs with 83 million orders on Swiggy in 2024 Strict action against officers for releasing public notices over ‘fraudulent’ schemes, says Delhi CM Atishi Newsmakers of 2024: Madhabi Puri Buch, chairperson, SEBI Also ReadSwiggy Instamart expands to 76 cities, says co launching a parallel standalone app
The NRAI believes this move creates a conflict of interest, allowing Zomato and Swiggy to exploit data derived from restaurant partners while launching competing products. The organisation warned that such practices could decimate the ecosystem that these platforms claim to support.
Daryani stressed that the NRAI is “absolutely not okay” with this development and announced plans to seek legal remedies while approaching regulatory authorities.
The NRAI has called on restaurants, customers and regulators to work together to ensure a fair and competitive food delivery environment. With the restaurant industry valued at Rs 5.69 lakh crore, the association emphasised the need for ethical practices to sustain the sector’s growth.
» Read More
