The National Restaurant Association of India NRAI approaches to file a complaint against Zomato and Swiggy to the Competition Commission India (CCI). The National Restaurant Association of India (NRAI) strongly opposes the private labeling practices of India’s food delivery giants. Zomato and Swiggy are allegedly engaging in monopolistic practices in the food delivery sector. The food delivery giants are privatizing food labels through their quick commerce platforms, Blinkit Bistro and Swiggy Snacc. The national body claims that it is violating marketplace neutrality.
NRAI President Sagar Daryani said that Zomato and Swiggy are leveraging their dominant position to access restaurant data and establish their new venture. Furthermore, this strategy will impact the restaurants that rely on these platforms. This raises concerns under the Copyright Act and other related laws. The NRAI will take the legally necessary steps to safeguard all restaurant interests. And that will include filing a complaint against these food delivery giants with the CCI.
Why is private labeling an issue?
Private labeling means these food delivery platforms are promoting their products, sidelining the partner restaurants. According to the NRAI, separate quick commerce apps are launched from Zomato named Blinkit Bistro and Swiggy named Swiggy Snacc. These services raised concerns among the partner restaurants that rely on reaching customers through these apps. According to NRAI, these food delivery giants began as marketplace platforms, listing restaurants. However, by launching their label, the restaurants are now their direct competitors who they were supposed to serve. Some argue that this move undermines fair competition and cannibalizes the restaurant business.
NRAI’s point about market neutrality
The NRAI says that Zomato and Swiggy are using their market position to access the restaurant data. That gives their private label an unfair advantage, which is hampering the other restaurants.
Impact on the Restaurant Industry
Many restaurants in India depend heavily on these platforms. The introduction of these platforms’ private labels poses a significant threat to thousands of restaurants in India. Hence, it will affect the customer acquisition and visibility of the restaurants. That is why the NRAI is about to take legal steps against Zomato and Swiggy for monopolizing the market.
Conclusion
The conflict between NRAI and food delivery giants raises concerns about fair opportunity and competition in India. The restaurant industry is striving to maintain fair business practices.