The National Restaurant Association of India has opposed the “private label” of e-commerce platforms Zomato and Swiggy as they try to enter the fast food delivery business through separate apps. It plans to file complaints with “relevant regulatory authorities” to take legal action against such platforms, according to a PTI report citing the restaurant body.
The NRAI said food delivery platforms, with their new platforms such as Blinkit Bistro and Swiggy Snacc, which deliver private label food, will monopolize the market and violate market neutrality, according to NRAI.
“What we are absolutely not okay with is Zomato and Swiggy doing private labels and selling food themselves. In Zomato via Blinkit’s separate Bistro app and Swiggy launching Snacc for quick food delivery,” NRAI MD & CEO of Wow! Momo Sagar Daryani said.
Swiggy’s new launch
Recently, Swiggy launched Swiggy Snacc to deliver corporate branded foods, challenging Zepto Cafe and Flashed Bistro. Snacc is a standalone app by Swiggy that promises 15 minutes food delivery in select pin codes of Bengaluru. The app was launched amid the growing popularity of fast food delivery services across the country. Zepto Cafe delivers quick snacks labeled with the Zepto brand. Blinkit Bistro is a similar app that promises to provide quick meals within minutes.
According to NRAI, “Zomato and Swiggy, which were originally established as marketplace platforms, are now leveraging their dominant positions and access to restaurant data to venture into private label food delivery, either directly or through their subsidiary. This strategy is not only cannibalizing the business of restaurants that relies on these platforms but also raises serious concerns under the Copyright Act and related laws.”
The restaurant body claimed that the current practices of Swiggy and Zomato violate the principles of fair competition and “pose a significant threat” to restaurants across the country.
“We are determined to pursue all available remedies to protect the interests of the restaurant industry. This includes filing complaints with relevant regulatory authorities and initiating legal action to prevent Zomato and Swiggy from monopolizing the market,” NRAI added.
