NRAI in additional information alleged that Zomato and Swiggy took commission of 25 to 35 percent of the order value in 2020-21. Also, there are many such instances when both the digital companies delayed payments.
The National Restaurant Association of India (NRAI) on Monday said it has submitted additional information to the Competition Commission of India (CCI) against food ordering digital platforms Zomato and Swiggy on allegations of indulging in uncompetitive activities. Earlier, on July 5, the association had said that non-competitive activities of Zomato and Swiggy are affecting the interests of restaurants. Keeping this in mind, he had applied before the CCI on July 1.
NRAI alleged in additional information that Zomato and Swiggy took commission of 25 to 35 percent of the order value in 2020-21. Also, there are many such instances when both the digital companies delayed payments. This has affected the cash flow of the partners. According to the organization, “Zomato and Swiggy pressurize their platforms to give discounts for better displaying of restaurant names. Both of them have put the entire cost burden on the restaurant.
NRAI said in a statement that restaurants are being affected by the non-competitive activities of Zomato and Swiggy. The organization said that in our application, we have raised issues like not giving accurate data information, charging more commission, giving substantial discounts, violation of platform neutral rules and lack of transparency. NRAI said that we warn Zomato and Swiggy that if they keep the same price then the names of the respective restaurants will be removed from their platform. There are many instances in which some partners have been removed from the platform because they have offered some better rates to the consumers on other channels.
An e-mail was sent to Zomato and Swiggy seeking their comments in this regard, but no response has come from their side.
NRAI President Anurag Katiyar said, “We have been in constant dialogue with Zomato and Swiggy over the last 15-18 months to resolve the problems affecting the sector. However, despite all our efforts, we were unable to solve the problems.” Qatariar said that that is why we have now filed an application in CCCI and requested for a detailed investigation in the matter.
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