The National Restaurant Association of India (NRAI) has met with top food delivery companies that include Zomato, Swiggy, Foodpanda and UberEats. According to a report by F&B News, the reason for this meeting was to express concerns over the deep discounts issue raised by restaurants. Many small and mid-sized restaurants had recently dragged these companies to the court regarding deep discounts and other issues.
Deep Discounting Issue
“Concerns of standalone and chain business operators regarding deep discounting, data masking, right to use own logistics, private labels and ad hoc campaigns were put forth,” said Rahul Singh, president, National Restaurant Association of India talking about the recent meeting. “Concerns have been well taken by all of them. We aim to continue these meetings on a bi-monthly basis for communicating feedback from the restaurant industry to the aggregators to ensure a healthy business environment for all stakeholders.”
Zomato India Speaks
In another statement to the media, Zomato India’s spokesperson said that the discounts was to encourage user participation. We, at Zomato, have been connecting consumers with restaurants for the past decade with the help of our various services. Discounts are merely a mechanism to encourage user participation as we advance our services. Our discounts and promotional schemes are carefully designed keeping in mind the best interest of all the parties in the ecosystem. We are actively working towards achieving a balance of user experience, restaurant growth and our operational efficiency,” said the spokesperson.
He also added that, “We have empowered our users to make informed food choices with the restaurant ratings and reviews platform and offer the widest of choices with over 75,000 restaurants listed on our food delivery platform. We have significantly expanded our online ordering and food delivery services over the last year and are currently present across 120 cities in India. We also have a significant breadth of loyal users who have trusted us with subscription programmes like Zomato Gold and Zomato Piggybank.”