MUMBAI: A New Front in the Food Delivery Wars

A significant conflict has emerged between traditional restaurants and the giants of food delivery, Swiggy and Zomato. This dispute centers around the launch of their new quick food delivery services, which many see as a direct challenge to Zepto's standalone cafe app. Restaurant owners are particularly upset, accusing these companies of leveraging customer data to produce and sell their own private label foods through these apps, currently available in select areas.

Swiggy and Zomato's Strategic Moves

Swiggy and Zomato, through its Blinkit service, have introduced Snacc and Bistro, respectively. These standalone apps promise to deliver snacks, beverages, and meals to customers in just 10-15 minutes. Anurag Katriar, a trustee at the National Restaurant Association of India (NRAI), has criticized this move as an abuse of dominance, stating that the companies are unfairly using restaurant data to compete directly with them.

The Core of the Dispute

Restaurants argue that by selling private labeled food, Swiggy and Zomato are no longer just marketplaces but have become direct competitors in the food service industry. This shift threatens the traditional restaurant model and has led to calls for legal action. Despite the controversy, the demand for quick commerce, fueled by the pandemic, continues to grow, with these companies expanding their services to include groceries, electronics, and more, all delivered within minutes.

Looking Ahead

As the debate over quick food delivery services heats up, the restaurant industry is calling for a clear distinction between marketplace and direct competition. With the potential for legal battles on the horizon, the future of food delivery in India remains uncertain. Stay informed with the latest Business News on Times of India for updates on this developing story.