Delhi, January 23, 2025:The National Restaurant Association of India (NRAI) has raised concerns over food delivery aggregators like Zomato and Swiggy getting into private labelling and dining-in, alleging that they are drawing customers away from their restaurants, The Indian Express reported.
Sagar Daryani, president of NRAI and CEO of WOW! Momos, said 10-minute food delivery apps such as Zomato’s Bistro and Swiggy’s Snacc are creating “an uneven playing field” for restaurants, the publication reported.
“They are getting products made from third-party commercial kitchens and selling them under their own private label,” he said. “They have all our data – nothing stops them from migrating a customer who is ordering a samosa or a chai or a biryani or a momo from Zomato to Bistro and maybe at a better price because they don’t have the pressure of high commissions.”
He also highlighted how food aggregators have entered the dining-in space, charging commissions on reservations and attracting customers through high discounts.
“In delivery, there’s some service involved. In dining-in, there is no service involved,” the report quoted Daryani as saying. “ They’re just bringing the customer to you. They have zero role to play in the entire experience of the customer. So why should they charge?”
Summary: Zomato and Swiggy face backlash from a restaurant body over ‘private labelling,’ questioning why the platforms charge for services like menu listing and delivery.