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NRAI May Approach CCI Over Zomato, Swiggy’s 10-Minute Food Delivery Apps

• ByStartupStory     |    January 10, 2025

In a fresh development that could escalate tensions between India’s food service industry and foodtech giants, the National Restaurant Association of India (NRAI) is reportedly planning to approach the Competition Commission of India (CCI) over Zomato and Swiggy’s new 10-minute food delivery standalone apps, Bistro and Snacc.

Citing anti-competitive practices, NRAI’s President and Wow Momo cofounder and CEO, Sagar Daryani, expressed concerns about these platforms allegedly using customer data unfairly to promote private labels. Speaking to The Economic Times, Daryani said, “They have access to all our data, which they do not share with us. For us, there is complete consumer masking. We have no reason to believe they are not migrating our customers to the products they sell as private labels on their apps, whether it’s data from a tea brand, biryani, or momo.”

NRAI has accused the foodtech giants of withholding consumer data from restaurant partners while allegedly leveraging this information to divert customers toward their own private-label products sold via apps like Blinkit’s Bistro and Swiggy’s Snacc. The association has raised alarm over the potential misuse of this data and called for immediate regulatory intervention.

“They have access to all our data, which they do not share with us,” Daryani reiterated, adding that NRAI is seriously considering legal action against these platforms.

This controversy comes amidst Swiggy and Zomato’s aggressive push into the quick commerce space, with Swiggy recently launching its 15-minute food delivery app, Snacc, in select areas of Bengaluru. Similarly, Zomato has introduced its own quick food delivery service.

The NRAI has long been critical of Swiggy and Zomato’s business practices, with multiple legal battles underway. The association has accused the platforms of anti-competitive practices, including bundling services, imposing one-sided clauses, exorbitant commission fees, and delayed payment cycles.

In addition to the current concerns, NRAI recently urged the government to grant industry status to the food services sector and implement a fair e-commerce policy to ensure a level playing field for restaurants, delivery partners, and consumers. “We need an equitable and fair e-commerce policy to protect all stakeholders from potentially exploitative practices of these platforms,” NRAI stated in its recent appeal.

Earlier investigations by the CCI have also found that Swiggy and Zomato violated competition laws by forming partnerships that favored select restaurants, further substantiating NRAI’s grievances.

The growing interest in the quick commerce segment has intensified competition among e-commerce and food delivery companies. Major players like Amazon, Flipkart, Reliance’s JioMart, and Tata BBNow have already entered the space, reflecting changing consumer preferences for faster deliveries.

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