NRAI to file complaint against Zomato, Swiggy over 'private labelling', food delivery via separate apps

New Delhi: Opposing "private labelling" by Zomato and Swiggy and their recent foray into quick commerce food delivery via separate apps, restaurant body NRAI on Thursday said it will file complaints with "relevant regulatory authorities" and initiate legal action to prevent them from monopolising the market.

According to NRAI, the entry of the two food delivery giants into delivering private labelled food via their own quick commerce platforms such as Blinkit Bistro and Swiggy Snacc fundamentally violates marketplace neutrality, creating an uneven playing field.

Comments from Zomato and Swiggy could not be obtained as emailed queries remained unanswered.

NRAI President Sagar Daryani said, "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".

"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," NRAI stated.

It further said the move undermines the principles of fair competition and "poses a significant threat" to the viability of thousands of restaurants across India.

"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," it stated.