The National Restaurant Association of India (NRAI) is reportedly considering legal action against Zomato and Swiggy in response to the launch of their 10-minute food delivery apps, Bistro and Snacc.
The NRAI is expected to approach the Competition Commission of India (CCI) to address what they see as anti-competitive behavior by these platforms.
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Sagar Daryani, president of the NRAI and cofounder of Wow Momo, expressed concerns that Zomato and Swiggy are misusing customer data. He criticized the companies for using private labeling and for selling food through Blinkit’s Bistro and Swiggy’s Snacc apps, which focus on rapid delivery. Daryani also pointed out that these platforms have access to valuable consumer data but do not share it with restaurant partners.
“They have full access to our customer data but refuse to share it with us. This leads to what we call consumer masking,” Daryani said. He also raised suspicions that Zomato and Swiggy could be steering customers towards their own private label products on these apps, using data gathered from restaurant partners, whether it’s about tea brands, biryani, or momo dishes.
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The NRAI’s concerns come at a time when Zomato, led by CEO Sriharsha Majety, recently launched its own 15-minute food delivery service through the ‘Snacc’ app in select areas of Bengaluru. Shortly after, Swiggy introduced a similar 15-minute delivery service. This is just the latest chapter in the NRAI’s ongoing battle with both platforms, who are already facing legal challenges from the association over allegations of anti-competitive practices.
