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. Also Read - Zomato IPO share allotment status: How to check IPO allotment status online
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. Also Read - Internet down: Zomato, Paytm, Disney+ Hotstar, Amazon, Myntra, many other global services suffered massive outage
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. Also Read - Zomato IPO: How to invest via bank, Zerodha, and Paytm Money
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