Restaurant Owners Accuse Zomato and Swiggy of Data Theft and Unfair Competition
The conflict between restaurant owners and food aggregators has escalated, with the National Restaurant Association of India (NRAI) filing a complaint with the Competition Commission of India (CCI) against Zomato and Swiggy. The NRAI alleges that these platforms are engaging in unfair practices, including data theft and private labelling of food products.
Zomato and Swiggy have recently ventured into direct food sales through platforms like Blinkit Bistro and Swiggy Snacc, respectively. These services, along with Zepto Cafe, offer rapid delivery of meals and snacks within 10 minutes, often at discounted prices. This move has intensified concerns among restaurant owners who claim that aggregators are leveraging customer data obtained from restaurant orders to compete directly with them.
The NRAI alleges that aggregators are using this data to identify popular dishes and replicate them under their brands, often at lower prices. This, they argue, constitutes unfair competition and harms the interests of independent restaurants.
While Zomato has denied these allegations and downplayed the impact of its Bistro service, the restaurant industry remains wary of this new competitive landscape. The 10-minute delivery model, coupled with the alleged use of customer data, poses a significant threat to the traditional restaurant business model.
This escalation marks a new phase in the ongoing conflict between restaurants and food aggregators. The CCI investigation will determine whether the allegations of data misuse and unfair competition are substantiated.
