Food aggregators Swiggy and Zomato met with NRAI representatives on August 29, this is a week into the NRAI’s #LogOut campaign and a few days after its letters to various food aggregators. According to a Livemint report, Zomato and Swiggy may change the way they offer discounts and standardise terms for onboarding restaurants. MediaNama cannot independently verify this.
At the meeting, both parties discussed 8 points raised by NRAI including deep discounts, uneven commission charges, private labels, forced fleet services, and uneven terms and conditions — issues also flagged by NRAI in its letters to the food aggregators on August 26. The food aggregators are now expected to meet NRAI in the second week of September with a formal proposal on the issues discussed.
“There is an in-principle agreement to resolve these issues within specific timeline,” said Anurag Katriar, NRAI’s Mumbai chapter head, in a statement to MediaNama. NRAI said Swiggy’s approach was “fairly constructive” and they understood “all our viewpoints and promised to come back with an actionable plan”. However, Zomato’s meeting began with a false note as they stated their intention to also introduce Zomato Gold on the delivery vertical, said Katriar. “This is an entirely unacceptable proposition to NRAI, due to the stated stance of #ZoGoisNoGo,” he said. Other issues were discussed at length, and Zomato is expected to follow-up in the next meeting, said NRAI.
A Zomato spokersperson said they had agreed “to meet in a short time to discuss potential solutions and the way forward”. Swiggy said they’d had a “constructive and collaborative dialogue”.
Zomato, Swiggy agreed to change features: report
Livemint also reported the NRAI as saying that Swiggy and Zomato have also agreed to bear the cost of discounts “partially if not fully” in case the restaurants face loses. Again, MediaNama was not independently able to verify what transpired in the meeting.
- Apart from this, the companies also agreed that a logical, scientific matrix should be in place to decide on the commission percentage, per Livemint
- The companies also believe that a maximum cap should on the commission hike be placed until it is discussed further, per the report
- he companies have also been directed to share their current terms of engagement with NRAI, per the report
- The association will discuss these terms with lawyers to come up with a standardised template for the restaurants. The aggregators have also been asked to analyse the issues related to customer data masking and solve it “as per prevailing law of the land”, per the report
Tussle between food aggregators and restaurant partners
The NRAI had started a #Logout campaign on August 14 claiming that it was protesting “against aggregators who have distorted a vibrant marketplace by aggressive discounting and predatory pricing”. In the aftermath of this campaign, Zomato CEO Deepinder Goyal had tweeted, on August 17, that Zomato had made “mistakes” and things hadn’t gone according to plan. He said that they needed to “do 100x more for our restaurant partners than we have done before”. Several restaurants had de-listed themselves from platforms such as Zomato Gold, EazyDiner, and Dineout’s Gourmet Passport, among others. These restaurants were protesting against discounts being offered by such platforms. According to a Livemint report, now almost 2,500 restaurants have de-listed themselves from the food aggregating platforms to protest against discount practices.