The Federation of Hotel & Restaurant Associations of India (FHRAI), representing over 60,000 hotels and 500,000 restaurants, has formally requested an immediate meeting with the Union Commerce Ministry regarding what it calls “data misuse and private labelling” by food aggregators Zomato and Swiggy. In a letter sent Wednesday, FHRAI raised alarms about these platforms’ new ventures into quick-service food delivery through their private-label apps, Bistro and Snacc.
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Although Blinkit co-founder Albinder Dhindsa recently defended the integrity of Bistro, stating it operates as a separate entity without using data from Zomato’s restaurant partners, FHRAI argues that both Bistro and Snacc are essentially subsidiaries of their parent aggregators.
The association’s letter expresses deep concerns, citing violations of e-commerce regulations, fair competition, and marketplace neutrality. FHRAI also warns that these developments could have severe repercussions for the restaurant industry as a whole.
Among FHRAI’s key grievances are the alleged misuse of restaurant data, breaches of intellectual property rights, and the creation of unfair competition by using consumer data to develop and promote private-label products. They argue that Zomato and Swiggy’s access to detailed customer and restaurant information—including demand trends, popular dishes, and pricing strategies—gives these platforms an unfair edge in launching their own competing brands.
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By replicating restaurant offerings and undercutting prices, these aggregators are, according to FHRAI, stripping restaurants of their competitive advantage.
Attempts to reach Zomato and Swiggy for comments on the matter have not yielded a response, with Zomato being in a silent period ahead of its results, and Swiggy unavailable for comment.
In light of these concerns, FHRAI has called on the Ministry of Commerce to intervene swiftly, urging the implementation of clear regulatory frameworks for data usage, enhanced transparency in business practices, and increased awareness among consumers.
