NRAI Criticizes Zomato and Swiggy for Private Label Food Delivery via Q-com Applications
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Mumbai, Jan 9 (NationPress) The National Restaurant Association of India (NRAI) expressed its firm disapproval on Thursday regarding the recent expansion of food delivery platforms Zomato and Swiggy into private-label food delivery via their quick commerce (Q-com) applications.
The prominent hotel industry organization articulated in a statement that this initiative undermines the tenets of fair competition and poses a substantial risk to the sustainability of numerous restaurants nationwide.
The NRAI advocates for over 500,000 restaurants, an industry valued at Rs 5.69 lakh crore.
According to the NRAI, Zomato and Swiggy, which were initially developed as marketplace platforms, are now exploiting their dominant positions and access to restaurant data to venture into private-label food delivery, either directly or through their subsidiaries.
This tactic not only cannibalizes the businesses of restaurants that depend on these platforms but also raises grave concerns under the Copyright Act and associated laws.
Their move into delivering food through private labeling and retailing on their platforms, along with delivering privately labeled food via their own quick commerce services such as Blinkit Bistro and Swiggy Cafe/Snacc, fundamentally breaches neutrality, creating an uneven playing field.
The NRAI pointed out that by monetizing data obtained from restaurant partners, they are exploiting a conflict of interest that could decimate the very ecosystem they profess to support.
Sagar Daryani, President of the NRAI, stated that they are completely against Zomato and Swiggy engaging in private labeling and selling food independently.
“They possess all our data, which they do not share with us. For us, there is total consumer masking,” argued Daryani.
“We have always received verbal assurances from the aggregators that they would refrain from private labeling. This breach of trust is deeply felt. Our businesses will suffer significantly with these platforms launching their private labels,” he remarked.
The NRAI urged all stakeholders, including restaurants, consumers, and regulators, to collaborate in fostering a fair and competitive food delivery ecosystem.
