Zomato, Swiggy Receive Letters from Restaurant Authority Urging Ban of Discounts

After a full battle against the steep reduction in online food aggregators in the Daikin-in section, the National Restaurant Association of India (NRAI) now has to remove deep reductions while resolving other issues of delivery platforms. Asked. To solve the problems, NRR on Monday wrote a letter to Swiggy, Zomato, UberEATS and Foodpanda.

In letters written to all major online delivery aggregators, it has been observed that while interacting with restaurant operators, operators are deeply outraged at the current transparency, forced reduction, uneven commission structure and common high hand. Aggregators in the food distribution space.

“# The logout movement has a high demand to be extended vertically to the delivery immediately. However, our responsibility as an industry entity first forced us to take part in the conversation, “he said in the letter. Like in the case of Daien-in services, the industry company has complained that it is providing discounts in the delivery department throughout the year. “Discounts are a unique right and can be expanded in cases. However, in the current climate, deeper reductions of up to 30-70 percent run the 365-day delivery platforms. “

It distorts the market and obstrucs the profitable growth of this sector. These discounts are not fixed or they are not very useful to the industry, “the letter stated. The association reiterated its stance that the discounts are mostly funded by restaurant operators and sometimes under “capped Force “. The letter also showed unequal commission charges that these charges are exploitative and that delivery service providers have unilaterally revised the fares.

“These commissions or charges are not authentic with any nature, they are exploitative and rationalizations. We request you to create a transparent system of commission or charges based on certain logical metrics, such as AOV (average order value) and volume of business. Etc., “NRAI said in a letter. The Association recognizes that aggregators do not share customer data with restaurants despite repeated requests and assures that data will not be modtized.

“The large delivery aggregators are using sales and customer data to divert their own brands, their own kitchens and traffic, thereby creating a very unfair game space with other restaurants. ” NRAI This behaviour aggregators Has described the interest as a conflict.

NRAI Mumbai Chapter head Anurag Kadriyar said: “I would like to reiterate that we are not against technology platforms, but our concerns are largely that these aggregators misuse their dominant position to take part in predatory behaviour; To create commercially and engagement norms. “In the last 11 days, the ‘ # logout ‘ campaign has taken place against the deep reductions offered by food service aggregators (FSA) in restaurants meal services across the country led by NRAI and the services of aggregators who have been logged out by most restaurants.

NRAI has signed a deal with Diaut, Egyptians, Nierbai and Magichas to make favorable changes in their model and charges, as four agreed to re-convert their products to eliminate deep reduction. Zomato, which offers Zomato gold platform for lunch services, has not diminished well with the restaurants association after NRR made some changes.