NRAI opposes private-label food delivery by Swiggy, Zomato; to take legal action against food delivery giants

The National Restaurant Association of India has opposed the "private labelling" by e-commerce platforms Zomato and Swiggy as they try to enter quick commerce food delivery through separate apps. It is planning to file complaints with "relevant regulatory authorities" to take legal action against such platforms, a PTI report said citing the restaurant body.

NRAI said food delivery platforms, with their new platforms such as Blinkit Bistro and Swiggy Snacc, which deliver private-label food, will monopolise the market and violate marketplace neutrality, according to NRAI.

“What we are absolutely not okay with is Zomato and Swiggy doing private labelling and selling food by themselves. In Zomato via Blinkit's separate Bistro app and Swiggy launching Snacc for quick food delivery,” NRAI President and CEO of Wow! Momo Sagar Daryani said.

Swiggy's new launch

Recently, Swiggy launched Swiggy Snacc to deliver company-labelled food items, challenging Zepto Cafe and Blinkit Bistro. Snacc is a standalone app by Swiggy promising 15-minute food delivery in selected pin codes of Bengaluru. The app was launched amid the rising popularity of quick food delivery services across the country. Zepto Cafe delivers quick snacks labelled with Zepto branding. Blinkit Bistro is a similar app that promises to provide quick meals within minutes.

According to NRAI, “Zomato and Swiggy, originally established as marketplace platforms, are now leveraging their dominant positions and access to restaurant data to venture into private-label food delivery either directly or via their subsidiary. This strategy not only cannibalises the business of restaurants that rely on these platforms but also raises serious concerns under the Copyright Act and related laws.”

The restaurant body claimed that the current practices by Swiggy and Zomato violate the principles of fair competition and "pose a significant threat" to restaurants across the country.

“We are committed to pursuing all available legal remedies to safeguard the interests of the restaurant industry. This includes filing complaints with relevant regulatory authorities and initiating legal action to prevent Zomato and Swiggy from monopolising the market,” NRAI added.