The National Restaurant Association of India (NRAI) may approach the Competition Commission of India (CCI) in ten minutes to intervene against food delivery apps Zomato and Swiggy.
NRAI has already taken action against both these food delivery and quick commerce companies. The matter regarding which is going on before CCI. Zomato-owned Blinkit and Swiggy recently launched apps called Bristow and Snack. NRAI’s latest complaint is that these food delivery companies are making the app available to consumers by only displaying the names and prices of food items without mentioning the name of any restaurant. That is, food delivery companies themselves are becoming equivalent to restaurants, which is a matter of controversy.
NRAI has claimed that the food delivery company’s app is at par with private label companies. In such a situation, the concern of restaurant partners has increased. “We do not believe that Zomato and Swiggy are launching private labels,” the restaurant body president said. Apart from this, we are also against instant food delivery through Blinkit’s Bristow app and Swiggy’s Snack app. They have access to all our data. Which they do not share with us. To us this is complete concealment from the consumer. We have no reason to believe that they are not driving our customers to the products they sell as private labels on their app, be it tea brands, biryani or Momo data. We are seriously considering legal action.
What is the resentment of NRAI?
Swiggy and Zomato-owned Blinkit has launched an app called Snack & Bristow to deliver snacks, drinks and food to customers within ten to fifteen minutes.
NRAI has claimed that the food delivery company is using its customers’ data to create and sell private label brands through its app.
This type of activity is pushing Swiggy and Zomato to become food service players and not limit themselves to the marketplace.
For example in Snack the food items are listed with the price but no restaurant is mentioned, i.e. the food delivery company is selling the food items without mentioning the name of the restaurant.
Zepto has never been a part of eateries, so it hasn’t faced controversy over its cafes not having access to their customer data.
