comscore Swiggy, Uber Eats and Foodpanda asked to ban 'deep discounts'

After Zomato, Swiggy, Uber Eats and Foodpanda asked to ban 'deep discounts'

The NRAI continues to wage its battle against online food aggregators like Zomato and Swiggy. They have voices their issues against deep discounting, lack of transparency, and more.

  • Published: August 27, 2019 11:00 AM IST

The ongoing war between the National Restaurant Association of India (NRAI) and online food aggregators is showing no signs of slowing. After targeting Zomato, the NRAI is now turning its attention towards the likes of Swiggy, Uber Eats, and Foodpanda. The association is asking these delivery platforms to do away with deep discounts while addressing other issues.

The association has written letters to all major online delivery aggregators. It claims that during interactions with restaurant operators, there was a strong sense of resentment. They claim to have issues with transparency, forced discounting, uneven commission structure and general high-handedness of the aggregators. “There was a high demand of immediately extending the #Logout movement to the delivery vertical as well. However, our responsibility as an industry body compelled us to engage in dialogue first,” the letter says.

The industry body is far from happy about the discounts on offer throughout the year. It says that “discounts are a privilege” and should only be given during occasions. “However, in the current environment, deep discounts, ranging from 30-70 percent, are given 365 days by delivery platforms,” the letter says.

The associations adds that most of the times these discounts end up being funded by the restaurant operators. Sometimes under “veiled coercion”. Other concerns include uneven commission charges, and refusal to share customer data.

#Logout movement against Zomato, Swiggy

Over the last 11 days, NRAI has led restaurants across India on a ‘#logout’ campaign against these food service aggregators (FSAs). The primary concerns are the deep discounts customers get courtesy of these aggregators.

In the meanwhile, NRAI has struck a deal with Dineout, Eazydiner, Nearbuy and Magicpin. The idea is to make favorable changes to their model and charges. The four have agreed to rejig their products to do away with deep discounting. Zomato, which provides Zomato Gold for dine-in services, has stopped engagement with NRAI. This was after it made some changes to the service, which did not go down well with the restaurants association.

With Inputs from IANS

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  • Published Date: August 27, 2019 11:00 AM IST