In a move that has sparked debate across the hospitality sector, major associations including the Federation of Hotel and Restaurant Associations of India (FHRAI) expressed their concern over the entry of food delivery giants Zomato and Swiggy into the “private label” food delivery market. Is. , This development has raised important questions about data privacy, fair competition and food safety, with calls for regulatory intervention gaining momentum.
According to the Federation of Hotel and Restaurant Associations of India (FHRAI), Zomato and Swiggy are now using their market dominance to compete directly with the businesses they were supposed to support.
In its statement, the Federation of Hotel and Restaurant Associations of India (FHRAI) said that Zomato and Swiggy, which initially served as platforms connecting restaurants to customers, are now expanding into the instant commerce sector by creating their own private-label food products. Have landed in.
“These platforms use restaurant data to create personalized offers and discounts, which in turn puts restaurants at a disadvantage, as they are essentially competing with their own information,” the association claimed.
It further said, the lack of clear regulations surrounding the production and sale of these private-label products creates concerns about the safety and quality of the food served to consumers.
The association said, the purpose of raising the issue is to address the growing concerns about the misuse of restaurant data by food delivery platforms and the unfair competitive advantage these platforms now have on restaurants.
“By leveraging data from restaurants such as customer preferences and sales trends, Zomato and Swiggy can create personalized deals that directly impact the restaurants’ business. This not only threatens the livelihood of small and medium-sized restaurants, but Questions also arise about data privacy and consent,” FHRAI said.
FHRAI vice-chairman Pradeep Shetty said, “We are meeting with the commerce ministry soon and have requested for an early appointment to discuss this serious issue. The activities of platforms like Zomato and Swiggy are in direct violation of established e-commerce rules. Shows.” These companies were originally designed to act as neutral marketplace platforms, not engaging consumers directly as competitors.
Last week, the National Restaurant Association of India (NRAI) had protested against “private labeling” by Zomato and Swiggy for instant commerce food delivery through separate apps, and said it would approach the “relevant regulatory authorities”. Will file complaint and initiate legal action to stop them. By monopolizing the market.
On Friday, Blinkit CEO Albinder Dhindsa said in a post on
“Also, as @DeepGoyal has always said, Zomato will never launch private brands on the Zomato app to compete with its restaurant partners. This still holds true. That’s why this service is Zomato (brand driven) organization), or app) it is a standalone team, with a standalone app – and no Zomato restaurant data is used.
Blinkit’s CEO said, “This will be a significant additional cost for us, but at Zomato, ethics and staying true to our word matter more to us than anything else and we are not going to give it up just to save some marketing costs. Are.” Post.
Response from Swiggy could not be obtained as emailed queries remained unanswered. The ongoing debate underscores the tension between technology-driven food delivery platforms and the traditional restaurant ecosystem. While Zomato and Swiggy have revolutionized the way consumers access food, the outcome of this clash could redefine the dynamics of the Indian food industry in the years to come.
