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2025 NRAI’s Concerns on Zomato, Swiggy |
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2025 NRAI’s Concerns on Zomato, Swiggy |
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03-03-2025, 09:25 AM
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2025 NRAI’s Concerns on Zomato, Swiggy
While Swiggy and Zomato have played a major role in revolutionizing food delivery, restaurants demands the need for a fair and transparent ecosystem.
 Restaurant VS Swiggy And Zomato Over the past few months, Zomato launched its Bistro app, and Swiggy introduced SnacQ, both offering 10-minute food delivery services. NRAI argues these apps directly compete with restaurants by leveraging insights gathered from restaurant data. Traditionally charging hefty commissions, Swiggy and Zomato are now perceived as competitors, not just facilitators. Additionally, the expansion of their dine-in services is eating into restaurant revenues. NRAI’s Concerns According to a Navbharat Times report, NRAI President Sagar Daryani said, “We have no issue with quick commerce itself. It has transformed grocery shopping and holds similar potential for food delivery. As industry custodians, we support innovation. However, the issue arises when Swiggy and Zomato use restaurant data to create private labels. They have insights that restaurants themselves don’t have, which they now use to compete with us.” Swiggy and Zomato are competing with fast-rising brands like Zepto Cafe, India’s rapidly growing unicorn. Zepto Cafe, launched in 2022, focuses on quick-bite food and beverages, processing 50,000–60,000 daily orders. By December 2024, Zepto introduced an app and aims to generate Rs 1,000 crore in revenue from the cafe segment by 2026. Zomato CEO Deepinder Goyal Zomato CEO Deepinder Goyal defends their approach, emphasizing the benefits of faster delivery. He stated that data consistently shows that reducing delivery times boosts restaurant demand. For instance, when they began managing last-mile delivery, we reduced average times from 45 minutes to 30 minutes, which significantly increased demand on our platform. Goyal added, “We believe the same will happen with 10-15 minute deliveries. Bistro targets large office markets where quick access to snacks, meals, and beverages within 10-15 minutes is in high demand.” Zomato has also introduced 15-minute delivery services for select restaurants via its main app, further expanding its offerings. Swiggy’s New Services Swiggy, too, entered the race by launching SnacQ, initially available in select Bengaluru areas. The app offers 128 menu items priced under Rs 200, with free delivery for cart values above Rs 100. Additionally, Swiggy has launched a service called Bolt, promising 15-minute delivery for select menu items from partner restaurants. NRAI Concerns Over Private Labels According to Daryani, the primary concern with Swiggy and Zomato’s private labels is their use of proprietary data. He notes, “They claim separate apps won’t use delivery app data, but I find it hard to believe. Their entire strategy is built on years of data and experience gathered from us.” Similar concerns were raised about Zomato’s Bistro, which allows users to log in using Zomato/Blinkit credentials and automatically fetch saved addresses and payment details from these platforms. High Commissions By Swiggy, Zomato Swiggy and Zomato charge commissions ranging from 16% to 30%, with new restaurants often paying at the higher end. While promoting their dine-in services, they’ve also started offering discounts of 15-20% on dining bills via bank partnerships. Though this increases Average Order Value (AOV) for both platforms and restaurants, it doesn’t always result in mutual benefit. Restaurants are seeking greater control over their data and protection against unfair competition from the platforms they once trusted. Similar Threads:
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