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Zomato’s Deepinder Goyal Addresses Restaurant Partners’ Concerns Over 10-Minute Delivery Model

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As tensions rise between restaurateurs and food delivery platforms Zomato and Swiggy over the introduction of 10-minute food delivery services, Zomato’s cofounder and CEO, Deepinder Goyal, has reached out to address the concerns of its restaurant partners.

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In an open letter, Goyal emphasized that Zomato has no plans to compete with the restaurants it collaborates with. He clarified that their new venture, Bistro, is not a private label or a Zomato-owned kitchen. “Zomato, as a restaurant aggregator, will never compete with its own partners. Unlike platforms like Amazon that sell their own private labels, we’ve stayed true to this commitment by not opening physical restaurants or using Zomato as a distribution channel for any of our own kitchens,” he explained.

This clarification comes amidst reports that the National Restaurant Association of India (NRAI) is considering legal action against Zomato and Swiggy for allegedly infringing on restaurant operations. The NRAI claims that services like Zomato Everyday and Swiggy Daily, which rely on company-owned private kitchens, are encroaching on their territory.

Goyal sought to reassure restaurant owners that Bistro is not a threat to their business. He highlighted that even if Bistro were to grow to 1,000 outlets, it would represent only 0.5% of the total food delivery market. “Scaling Bistro isn’t the main objective. The goal is to explore a sustainable business model that restaurants themselves can adopt. India’s out-of-home food consumption market has significant room for growth, and innovative models like Bistro can attract new customers, benefiting the entire restaurant ecosystem,” he added.

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He also acknowledged that the expertise of running a restaurant lies with the restaurateurs, not with Zomato. According to Goyal, the 10-minute delivery segment won’t dominate the market but will exist as one of many service models. He further assured stakeholders that Bistro would operate as a standalone app, completely separate from Zomato, and would not have access to restaurant data that could create an unfair advantage.

By addressing these concerns, Goyal hopes to maintain trust with restaurant partners while positioning Bistro as a complementary addition to the industry, rather than a competitor.

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