After the “Logout” movement by restaurants against heavily discounted dine-in programmes offered by food aggregators, the national restaurant association (NRAI) on Monday, March 2, sent notices to online delivery aggregators, flagging “serious concerns” over alleged “lack of transparency, deep discounting and abuse of dominant position by the online delivery aggregators.” The NRAI has sent letters to Swiggy, Zomato, Uber Eats, and Foodpanda on the same, stating that the delivery business model of deep discounting and data masking is hurting thousands of mid-sized and even large restaurant chains.
NRAI Mumbai chapter head Anurag Katriar said the association has written official letters strongly raising the prevailing concerns to the online aggregators. “There is a very strong demand to immediately extend the ‘Logout’ movement to the online delivery vertical as well. However, as a responsible industry body, we want to actively engage with these delivery aggregators to find a solution,” Katriar said in a statement.
He said all standalone and chain restaurateurs across India have displayed “strong resentment on deep discounting, data masking, high and uneven commission charges by online food aggregators”. Compared to dine-in programs, the online delivery model is huge. According to industry estimates, while Swiggy does about 1.2 million orders a day across 300 cities, Zomato delivers approximately 1 million daily orders across 500 cities.
“We are not against the technology platforms, but our concerns are largely around these aggregators misusing their dominant position to indulge in predatory behaviour,” Katriar said.
Full Content: The News Minute
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI