NRAI to Address CCI Concerning Zomato and Swiggy’s “Private Labelling” Practices
The National Restaurant Association of India (NRAI) is gearing up to take action against the alleged anti-competitive practices of food delivery giants Zomato and Swiggy. The bone of contention? Private labelling through Zomato’s Bistro and Swiggy’s Snacc. NRAI President Sagar Daryani has voiced apprehensions about the detrimental effects these practices could have on restaurants and is advocating for the exploration of viable alternatives such as the Open Network for Digital Commerce (ONDC), following its promising outcomes in Bengaluru.
The move by NRAI to escalate the matter to the Competition Commission of India (CCI) underscores the gravity of the situation. Private labelling allows Zomato and Swiggy to offer products under their in-house brands, directly competing with the very eateries that rely on their platforms for business. This not only creates a conflict of interest but also potentially puts partner restaurants at a disadvantage by prioritizing these private labels in search results and promotions.
Sagar Daryani’s concerns are well-founded. For restaurants already reeling from the economic repercussions of the pandemic, facing unfair competition from the very platforms they collaborate with could deal a severe blow to their survival. The lack of a level playing field not only impacts the bottom line of these establishments but also stifles innovation and diversity in the food industry.
In light of these challenges, exploring alternatives like ONDC emerges as a beacon of hope. The success of ONDC in Bengaluru, where it facilitated direct relationships between restaurants and customers, bypassing aggregators like Zomato and Swiggy, showcases the potential for a more equitable ecosystem. By enabling restaurants to have greater control over their offerings, pricing, and customer data, ONDC empowers them to build direct connections and loyalty with patrons.
The case of Zomato and Swiggy’s private labelling practices serves as a stark reminder of the power dynamics at play in the digital marketplace. While these platforms have undoubtedly transformed the way we dine and order food, their growing dominance necessitates a reevaluation of the dynamics between aggregators, restaurants, and consumers. Upholding fair competition and ensuring a thriving ecosystem for all stakeholders should be paramount in shaping the future of food delivery in India.
As NRAI prepares to make its case to the CCI, the outcome of this confrontation could set a precedent for how competition and fairness are upheld in the digital age. The resolution of this dispute will not only impact the immediate parties involved but also send ripples across the broader landscape of e-commerce, digital marketing, and retail practices.
In a landscape where technological advancements outpace regulatory frameworks, it falls upon industry bodies like NRAI to champion the cause of fairness and transparency. By addressing the challenges posed by private labelling and advocating for solutions that foster a more inclusive and competitive environment, NRAI stands at the forefront of safeguarding the interests of restaurants and consumers alike.
As the saga between NRAI and Zomato, Swiggy unfolds, the implications for the future of food delivery in India are profound. The resolution of this conflict could pave the way for a more balanced and equitable ecosystem, where innovation thrives, and stakeholders are empowered to shape their destinies in the digital realm.
#NRAI #CCI #Zomato #Swiggy #ONDC