NRAI to Sue Zomato and Swiggy Over Allegations of Market Monopolization in Food Delivery - PRESS AI WORLD
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NRAI to Sue Zomato and Swiggy Over Allegations of Market Monopolization in Food Delivery

share-iconThursday, January 09 comment-icon1 week ago 9 views
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indiatimesINDIATIMES
NRAI to Sue Zomato and Swiggy Over Allegations of Market Monopolization in Food Delivery

Credited from: INDIATIMES

The National Restaurant Association of India (NRAI) has declared its intention to take legal action against major food delivery platforms Zomato and Swiggy, accusing them of monopolistic practices. This decision arises in light of these companies' recent ventures into quick food delivery and private labeling through their new apps, Blinkit Bistro and Swiggy Snacc. The NRAI alleges these actions breach marketplace neutrality by giving the platforms an unfair advantage, significantly harming the restaurant industry.

NRAI President Sagar Daryani expressed strong opposition to the trend, stating, "What we are absolutely not okay with is Zomato and Swiggy doing private labelling and selling food by themselves." The association's concerns highlight that the data advantages these companies enjoy, derived from their partnerships with restaurants, are being leveraged to undermine restaurant businesses. The NRAI claims that this practice threatens the survival of thousands of eateries across India.

In response to Zomato and Swiggy's move, restaurateurs have voiced their frustrations, emphasizing that these companies are crossing boundaries from being merely platforms into becoming competitors in the food service sector. Anurag Katriar, a trustee at the NRAI, stated, "This is clearly an abuse of dominance. Swiggy and Zomato are taking unfair advantage of our data and entering our territory." The concerns revolve around the potential transition from an aggregator model, where deliveries are made through restaurant partnerships, to a model where the platforms sell their own branded products directly to consumers.

As part of their strategy to ensure fair competition, the NRAI has affirmed it will explore all legal avenues, which could involve filing complaints with regulatory bodies alongside pursuing lawsuits against these companies. So far, both Zomato and Swiggy have chosen to remain silent on these allegations, with queries sent to them remaining unanswered.

As the market for quick food delivery grows, fueled by the likes of competitors Zepto and even grocery delivery services, restaurant alliances will continue to advocate vigorously against what they see as encroachments on their business.

For ongoing updates, please refer to the original articles from Indiatimes.

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