Companies like swiggy and zomato are competing 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 Bistro through its quick commerce platform Blinkit, through which it is promising to deliver food in 10 minutes. Now this fast paced race has come under the eyes of the 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 swiggy and Zomato's separate 10 minute food delivery apps. This news has been received according to the report of Economic Times of India. The matter has come to light following a case filed before the antitrust regulator NRAI accusing both platforms of anti-competitive behavior.
zomato and Swiggy's new standalone apps will cause harm
Zomato's Blinkit has introduced new standalone apps called Bistro and swiggy has launched Snack. According to an ET report, NRAI claims that these apps come under the private label operations of the companies. This can basically have a negative impact on restaurant partners, so NRAI has taken this step.
Legal action is being seriously considered
NRAI President and Wow Momo's 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
Concerns have been raised in this case that swiggy and Blinkit may be directing customers to the food delivery app through their private label offerings. The way they are delivering tea, biryani and momos to customers should be seen as a direct competition with restaurants and this is an unfair trade practice. The facts presented before NRAI state that both Bistro and Snack apps are procuring food from third parties and delivering it through their quick commerce dark stores. Along with this, restaurants are also delivering food through aggregators through 15-10 minutes food delivery apps.
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