Zomato Swiggy Food Delivery Apps: Companies like Swiggy and Zomato are racing fiercely in the race of quick food delivery. Recently, Swiggy has launched SNACC, an app that delivers food, snacks and drinks in 15 minutes, while Zomato has also launched a new platform called ‘Bistro’ through its quick commerce platform Blinkit, through which it promises to deliver food in 10 minutes. Still working. Now this high-speed race has come under the radar of regulators. Know what has happened..
NRAI will go to Competition Commission of India
The National Restaurant Association of India has decided to approach the Competition Commission of India regarding the launch of separate 10-minute food delivery apps by Swiggy and Zomato. This news has been received according to the report of Economic Times of India. The matter has come to light after a case was filed before the antitrust regulator NRAI in which both the platforms have been accused of anti-competitive behavior.
Zomato and Swiggy’s new standalone app will cause loss
Zomato’s Blinkit has introduced new standalone apps called Bistro and Swiggy has introduced new standalone apps called Snack. According to the ET report, NRAI claims that these apps come under the private label operations of the companies. This can basically have a negative impact on the restaurant partners, hence NRAI has taken this step.
Legal action is being seriously considered
NRAI President and Wow Momo co-founder and CEO Sagar Daryani has strongly opposed Zomato and Swiggy’s move towards private labeling. He said that the association is “seriously considering taking legal action” against such companies regarding these practices.
Why was the allegation of unfair trade practice made?
In this matter, concerns have been raised that Swiggy and Blinkit may be driving customers directly from the app to the food delivery app by offering their private labels. The way they are delivering tea, biryani and momos to customers should be seen as direct competition with restaurants and is an unfair trade practice.
In the facts placed before NRAI, it has been said that both the apps like Bistro and Snack are procuring food from third parties and delivering it through their quick commerce dark stores. Along with this, from now onwards restaurants are also delivering food through aggregators through 15 minutes-10 minutes food delivery app.
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