Zomato, Swiggy to meet members of NRAI to re-initiate talks on discounts

Forum Gandhi Mumbai | Updated on August 29, 2019

File photo   -  AFP

According to sources, over 3,000 restaurants have logged out of the portals so far

Zomato and Swiggy are set to meet restaurateurs of National Restaurant Association of India (NRAI) on August 29 to re-initiate discussion on deep discounting in the online food delivery segment.

Earlier this week, NRAI had written a letter to Swiggy, Zomato, Uber Eats and Food panda and raised concerns over deep discounting, data masking, high & uneven commission charges by online food aggregators.

According to sources, over 3,000 restaurants have logged out of the portals so far.

Read: Zomato logs out of talks with restaurateurs on deep discounting

"We are not against the technology platforms, but our concerns are largely around these aggregators misusing their dominant position to indulge in predatory behavior; commercially and in forming the terms of engagement,” said Anurag Katriar, Head of NRAI Mumbai Chapter.

The letters represented large standalone & chain restaurants, smaller players operating in micro-markets across India and the fast-growing cloud kitchen entities.

On August 15, about 300 restaurateurs signed up to the ‘#LogOut’ campaign against online food discovery platforms like Zomato, NearBuy, MagicPin and EazyDiner, challenging their deep discounting practices.

While there was a consensus between NRAI and NearBuy, MagicPin along with EazyDiner, Zomato and NRAI were not able to meet ends.

Zomato made several tweaks to its ‘Zomato Gold’ programme, informing them of “upcoming improvements” by September 15. It also asked the restaurateur-partners to sign-up for the programme before August 26.

Read: Zomato offers tweaks to deep discount scheme, but restaurants are not buying it

However, NRAI declined the offer.

Last week Deepinder Goyal, founder of Zomato, in a series of tweets penned his thoughts on the campaign. Eventually, he decided to walk out of the ongoing talks with the NRAI.

“Zomato is logging out of the logout campaign. We have said enough and we are getting back to work,” Goyal had said in a tweet.

Published on August 29, 2019

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