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NRAI flags deep discounting, high commission charges, private labels in letter to food aggregators

Graphic showing app-based food ordering

Amidst the ongoing #Logout movement, the National Restaurant Association of India (NRAI) has sent letters to all food aggregators including Zomato, Swiggy, UberEATS, Foodpanda on August 26, flagging several issues such as lack of transparency, deep discounting and abuse of dominant position by the food aggregators. "This is specially impacting the growth, employment and sustainability of the thousands of small restaurants and start-ups in the country," NRAI wrote in its letter (attached below). "There is a very strong demand to immediately extend the #Logout movement to the online delivery vertical as well. Let me reiterate that we are not against the technology platforms, but our concerns are largely around these aggregators misusing their dominant position to indulge in predatory behaviour; commercially and informing the terms of engagement,” said Anurag Katriar, Head of NRAI Mumbai Chapter. We have reached out to UberEATS, Zomato, Foodpanda and Swiggy for comments, we'll update this when we hear from them. NRAI's letters to Zomato, Swiggy, Foodpanda and UberEATS: deep discounting, customer data Apart from its letter to all aggregators, NRAI addressed separate letters to the four largest aggregators — Zomato, Swiggy, Foodpanda and UberEATS — enlisting major issues faced by restaurants: Customer data masking: Aggregators don't share user data with the restaurants, which disconnects them from consumers; aggregators also use the data to divert traffic for their own commercial benefit. "In the interest of consumer privacy, we also want strict assurances against monetising the data of our customers," the letters read. Deep Discounts: Discounts ranging from 30-70% "distorts the market…

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