Companies

NRAI says it has filed additional information with CCI against food aggregators

Our Bureau New Delhi | Updated on July 12, 2021

It had alleged that Zomato and Swiggy are charging exorbitant commissions and delaying payments

The National Restaurant Association of India (NRAI), on Monday, said it has filed additional information with the Competition Commission of India (CCI) against Zomato and Swiggy alleging that the two food aggregators are charging exorbitant commissions and delaying payments.

The industry body had first approached CCI on July 1 against “the anti-competitive practices” of the two food aggregators.

On Monday, the industry body filed “additional information with evidence” with CCI claiming that the aggregators are charging commissions to the tune of 25-35 per cent of the order value in 2020-21. It has also alleged that there have been numerous instances of delay in payments by Zomato and Swiggy which has affected the entire cash flow of restaurant partners.

Also read: Anti-competitive practices: NRAI files plaint against Zomato, Swiggy

‘Delay in payments’

“Zomato and Swiggy are forcing restaurant partners to give discounts on their platforms to maintain good visibility on the platform. They have shifted the entire cost burden on the restaurants,” NRAI said, in its latest statement. It has also alleged that these factors have led to extremely stressful conditions for restaurants.

The industry body has also said that there have been instances where restaurants have been delisted by the platforms since they offered some better rates to consumers on other channels.

“NRAI believes that the evidence furnished before the Hon’ble CCI will further evidence the unfair business practices of Zomato & Swiggy and the authority will investigate the conduct of these aggregators,” the statement added.

Also read: Restaurant body approaches competition panel to resolve issues with food aggregators

Anurag Katriar, President of NRAI, said, “Ever since the news of us filing information against food aggregators with the CCI came out in the public domain, we have received overwhelming support from our restaurant partners and the industry in general. Many members have shared their personal experiences of misuse of power by these food aggregators. This prompted us to file some additional information with the CCI to ensure that our continued efforts to safeguard the interests of the F&B industry will bear fruit and this in turn will help in providing a level playing field for each player in the marketplace.”

Published on July 12, 2021

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