Zomato Pay and Swiggy Diner are dangerous for dine-in industry ...
30 October 2024
The National Restaurant Association of India (NRAI) on September 2 issued an advisory to its member restaurants warning them about adopting Swiggy Diner and Zomato Pay, the dine-in payment options offered by the two food delivery companies. Currently, both platforms are piloting these payment options in Hyderabad, LiveMint reported.
Why does this matter: While this is being called an “advisory,” it’s nothing but a veiled attempt by NRAI to discourage restaurants from adopting Zomato Pay and Swiggy Diner, which the influential restaurant body believes to be harmful to the entire industry. “The decision you make today as restaurateurs will have a long-term impact on the economics of the entire sector, we hope that your final choice reflects this,” NRAI cautioned at the end of the advisory.
What is NRAI: NRAI claims to represent over 5 lakh restaurants across India and it has been at the forefront of the battle between restaurants and online food delivery platforms. In April this year, the Competition Commission of India (CCI) launched an investigation into Zomato and Swiggy based on a complaint filed by NRAI in July 2021 alleging anticompetitive practices like bundling of services, data masking, exorbitant commissions, deep discounting, and violation of platform neutrality.
MediaNama reached out to Swiggy and Zomato for a comment. While Swiggy refused to comment, a Zomato spokesperson responded stating: “With our new dining product, now live in Hyderabad for a few weeks with great results, we are confident that we will create tremendous value and growth for the industry. We are looking forward to working with progressive restaurants in the industry.”
The National Restaurant Association of India (NRAI) on September 2 issued an advisory to its member restaurants warning them about adopting Swiggy Diner and Zomato Pay, the dine-in payment options offered by the two food delivery companies. Currently, both platforms are piloting these payment options in Hyderabad, LiveMint reported. Why does this matter: While this is being called an “advisory,” it’s nothing but a veiled attempt by NRAI to discourage restaurants from adopting Zomato Pay and Swiggy Diner, which the influential restaurant body believes to be harmful to the entire industry. “The decision you make today as restaurateurs will have a long-term impact on the economics of the entire sector, we hope that your final choice reflects this,” NRAI cautioned at the end of the advisory. What is NRAI: NRAI claims to represent over 5 lakh restaurants across India and it has been at the forefront of the battle between restaurants and online food delivery platforms. In April this year, the Competition Commission of India (CCI) launched an investigation into Zomato and Swiggy based on a complaint filed by NRAI in July 2021 alleging anticompetitive practices like bundling of services, data masking, exorbitant commissions, deep discounting, and violation of platform neutrality. MediaNama reached out to Swiggy and Zomato for a comment. While Swiggy refused to comment, a Zomato spokesperson responded stating: “With our new dining product, now live in Hyderabad for a few weeks with great results, we are confident that we will create tremendous value and growth for the industry. We are looking forward to working with progressive restaurants in the industry.”
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