FHRAI Raises Concerns Over Food Aggregators’ Q-Commerce Ventures
The Federation of Hotel & Restaurant Associations of India (FHRAI) has decided to approach the Commerce Ministry, voicing concerns over alleged violations of e-commerce rules by food aggregators Zomato and Swiggy. This move follows the National Restaurant Association of India (NRAI) announcement to consider legal actions, including approaching the Competition Commission of India (CCI), against the two major marketplace platforms.
Zomato and Swiggy have recently ventured into Q-commerce through their private labels, Blinkit’s “Bistro” and Swiggy’s “Snacc,” sparking significant backlash from the restaurant industry. Restaurateurs argue that these moves compromise platform neutrality, as food aggregators leverage data collected from partner restaurants to develop competing products. This has raised ethical concerns and fears of unfair competition, which could jeopardize the survival of independent restaurants.
Pradeep Shetty, Vice President of FHRAI, emphasized the need for immediate regulatory intervention, citing that Zomato and Swiggy should operate solely as marketplace platforms. Other restaurateurs, including Joy Singh of Yeti – The Himalayan Kitchen and Shruti Malik of Anardana, have echoed these concerns. They highlight the challenges posed by minimal profit margins, high commissions, and the aggregators’ use of restaurant-generated data to undercut their partners.
The restaurant industry also fears that the dominance of private labels may erode culinary diversity and stifle independent businesses. Restaurateurs are calling for strong regulatory measures to ensure transparency and fairness in the food delivery ecosystem. Aashi Gupta, co-founder of SALT, emphasized the need for a level playing field, urging platforms to refrain from monopolistic practices.
As the issue gains momentum, FHRAI and NRAI are advocating for ethical business practices and regulatory oversight to preserve the integrity of the restaurant industry. Independent restaurants remain the cornerstone of culinary diversity, and their survival is crucial to maintaining the vibrancy of the food delivery ecosystem.
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Keywords:
FHRAI, NRAI, Zomato Q-commerce, Swiggy Q-commerce, private label apps, restaurant industry challenges, platform neutrality, e-commerce rules violation, independent restaurants, culinary diversity, food aggregators