Regarding Zomato and Swiggy's 10-minute Delivery Apps, NRAI Plans to Approach CCI

Nitin Konde, Varun Bhardwaj

Jan 10, 2025 — 3 min read

NRAI to Take Zomato and Swiggy's 10-Minute Apps to CCI

The National Restaurant Association of India (NRAI) is expected to petition the Competition Commission of India (CCI) for intervention about the launch of the 10-minute meal delivery standalone apps, Bistro and Snacc, adding to the problems caused by Zomato and Swiggy's anti-competitive conduct. According to a media story that quotes Sagar Daryani, the founder and CEO of Wow Momo, as well as the president of NRAI, NRAI is seriously considering pursuing legal action against both businesses. Daryani further stated that NRAI is not comfortable with Zomato and Swiggy selling food directly through Blinkit's Bistro app and Swiggy's Snacc app for speedy meal delivery, as well as with the two companies allegedly hiding consumer data.

Daryani further emphasised that although these platforms have access to important customer data, they do not provide restaurant partners with this information. All of our data is at their disposal, yet they choose not to share it with us. There is total consumer masking for us. “Whether it’s data from a tea brand, biryani, or momo, we have no reason to believe they are not migrating our customers to the products they sell as private labels on their apps,” the journal said, quoting Daryani. The NRAI is concerned that Zomato and Swiggy may use this information to entice users to buy their goods via these apps.

NRAI Already Battling Two Legal Battles Against Swiggy and Zomato

The startup led by Sriharsha Majety launched a new app earlier this week called "SNACC," which aims to provide a 15-minute meal delivery service in a few areas of Bengaluru. Zomato then introduced its 15-minute meal delivery service. It is important to remember that in addition to being outspoken about its concerns about Zomato and Swiggy's business practices, the NRAI is also pursuing two lawsuits against the companies, claiming they have engaged in anti-competitive behaviour. In an effort to create a level playing field and safeguard eateries, delivery partners, and customers from potentially exploitative platform activities, NRAI requested just a day ago that the government provide industry status to the food services sector.

The food delivery giants were accused by the association of anticompetitive activities in the past, including service bundling, excessive commissions, delayed payment cycles, and the imposition of one-sided terms. According to reports, the CCI discovered a few months ago that foodtech giants Swiggy and Zomato had violated competition regulations by favouring certain eateries through their relationships.

Why there is a Need of Strict Guidelines

Based on a complaint submitted by the National Restaurant Association of India (NRAI) in 2021, the CCI had previously investigated both businesses in 2022. This is the main reason why many consumer service and e-commerce businesses are either trying to enter or are already in the rapid commerce market. This trend reflects the shifting preferences of consumers, who now want their purchases delivered quickly. Amazon, Flipkart, JioMart from Reliance, and Tata BBNow are just a few of the companies that have recently entered the market. Better anti-competition policies and procedures are therefore required in order to guarantee these restaurant partners—particularly the smaller ones—fair play.