Swiggy, Zomato must learn to live with restaurateurs – The New Indian Express


It is indeed ironic that delivery vendors for food stores and restaurants are being dragged to India’s Competition Commission by the companies they are supposed to partner with and benefit from. But that’s exactly what happened. The National Restaurant Association of India alleged a host of “monopoly practices” by online delivery chains Zomato and Swiggy and demanded that the fair trade regulator launch an investigation. Some of the various alleged “anti-competitive” practices include forcing restaurants to give deep discounts if they wish to continue to be listed. This interferes with normal physical attendance in restaurants and makes businesses unpaid. Additionally, these food aggregators are known to charge high commissions per order, and they have been opaque with delivery and customer data.

Two major developments have shifted the pendulum of catering and catering services in favor of delivery aggregators. First, lockdowns over the past 15 months have locked families home and made it so that the only way to eat another meal is to order through online delivery. Second, the food delivery aggregator industry, due to the huge investments involved, has seen the small players pull out, leaving only the big cats – Zomato and Swiggy.

Who can compete with a Zomato, who is relaunching Rs 9000 crore thanks to an IPO? Meanwhile, smaller but competitive players like Scootsy have been swallowed up by Swiggy. It is therefore necessary for the Competition Commission to intervene to ensure that restaurant and food businesses do not close because of the unfair and monopolistic practices of online delivery chains. For people like Zomato and Swiggy too, there has to be a realization that they depend on the F&B industry for growth and profits, and if they squeeze it too hard it will kill the goosebumps. golden eggs. In the longer term, the answer lies in the gradual restoration of restaurant catering. Food packages at home are no substitute for the joy of a family night out; and hopefully it won’t be long before restaurants and home deliveries learn to coexist as before.


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