NRAI opposes Swiggy, Zomato’s private label food delivery; takes legal action against food delivery giants

The National Restaurant Association of India has objected to the “private brands” of e-commerce platforms Zomato and Swiggy as they try to enter the fast commercial food delivery space through separate apps. A PTI report quoted the restaurant body as saying that the company is planning to file a complaint with “relevant regulatory authorities” to take legal action against such platforms.

NRAI said food delivery platforms like Blinkit Bistro and new platforms offering private label food like Swiggy Snacc will monopolize the market and violate market neutrality.

“What we absolutely cannot accept is Zomato and Swiggy labeling and selling food themselves. In Zomato, Snacc through Blinkit’s standalone Bistro app and Swiggy launched Snacc for fast food delivery,” said Momo Sa, President and CEO, NRAI, Wow! Gal Dariani said.

Swiggy new product launch

Recently, Swiggy launched Swiggy Snacc to offer the company’s own brand of food products, taking on Zepto Cafe and Blinkit Bistro. Snacc is a standalone app launched by Swiggy that promises 15-minute food delivery using selected codes in Bengaluru. The app comes amid the growing popularity of fast-food delivery services across the country. Zepto Café offers fast food under the Zepto brand. Blinkit Bistro is a similar app that promises fast food in minutes.

According to NRAI, “Zomato and Swiggy, initially established as marketplace platforms, are now leveraging their dominance and access to restaurant data to venture into the private label food delivery space, either directly or through their subsidiaries. This strategy is not only cannibalizing dependencies These platforms also raise serious concerns about copyright and related laws.”

The restaurant body claimed that the current practices of 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 interest of the restaurant industry. This includes filing complaints with relevant regulatory authorities and taking legal action to prevent Zomato and Swiggy from monopolizing the market,” NRAI added.