Restaurant Association NRAI Threatens Legal Action Against Zomato & Swiggy’s 10-Min Food Delivery Apps; Says It Undermines Fair Competition

Recently, food delivery giants Zomato and Swiggy stepped into private-label food delivery through their quick-commerce platforms. Zomato, with its Blinkit Bistro, and Swiggy, with its Snacc, offer 10-minute food delivery, and this isn’t settling well with the National Restaurant Association of India (NRAI). They have strongly opposed Zomato and Swiggy’s entry into this market. Scroll on to know more about this.

NRAI Opposes Zomato’s Blinkit Bistro & Swiggy’s Snacc

According to the Financial Express, NRAI is opposed to Zomato and Swiggy’s entry into private-label food delivery through their quick-commerce platforms. The restaurant association represents over five lakh restaurants across India and feels that this move by the food delivery giants undermines fair competition and “violates marketplace neutrality.” They further added that this could threaten restaurants nationwide.

They feel that the food delivery platforms are leveraging their market positions and access to restaurant data to launch private-label food products. While talking to the Financial Express, NRAI President and CEO of Wow! Momo, Sagar Daryani said the association is “absolutely not okay with Zomato and Swiggy doing private labelling and selling food by themselves.” He further added that this move “cannibalises the business of restaurants that rely on these platforms”.

They have threatened to take legal action against Zomato and Swiggy and approach the Competition Commission of India (CCI) to raise legal concerns under the Copyright Act and related laws.

Also Read: Swiggy Customer Shares Creepy Experience With A Delivery Guy; Says, “The Whole Situation Left Me Shaken”

Swiggy’s New Venture Into 10-Minute Food Delivery

After Zepto Cafe and Blinkit Bistro, Swiggy recently launched Swiggy Snacc to deliver company-labelled food items. This standalone app delivers food in 15 minutes in selected pin codes of Bengaluru right now. This move comes with the rising popularity of 10-minute food delivery among people. Zepto Cafe was the first to offer such deliveries under Zepto branding. In December, Zomato-owned Blinkit also launched ‘Bistro’. It is a similar app that offers quick meals within minutes.

Also Read: Zomato Year-End Report: Bengaluru Foodie Spent ₹5 Lakh At A Restaurant This Year; Biryani Most Ordered Dish

What’s your take on this entire issue? Share your thoughts in the comments section.

Cover Image Courtesy: Google Playstore & Canva (representative image)