NRAI opposes Zomato and Swiggy's private-label ventures
The NRAI has called this a breach of trust, as the aggregators had previously assured the industry that private labelling would not be pursued
The National Restaurant Association of India (NRAI) has raised strong objections to food delivery giants Zomato and Swiggy entering the quick commerce sector through private-label food delivery. The NRAI asserts that this move undermines fair competition and the survival of thousands of restaurants across India.
Originally operating as marketplace platforms, Zomato and Swiggy are now leveraging their dominant market positions and access to restaurant data to launch private-label food offerings, including through their subsidiaries. The NRAI has called this a breach of trust, as the aggregators had previously assured the industry that private labelling would not be pursued.
Speaking on the announcement, Sagar Daryani, President of the NRAI, said, “Quick commerce in food is here to stay, grow and add more zing to the food delivery space. People want more convenience and so it will add an edge to the restaurants that can adapt to it. We are completely for it. What we are absolutely not okay with is Zomato and Swiggy doing private labelling and selling food by themselves. In Zomato via Blinkit’s separate Bistro app and Swiggy launching Snacc for quick food delivery. They have all our data which they do not share with us. For us there is complete consumer masking. We have no reason to not believe them migrating our customers to the products they sell as private labels on their apps. Be it data from a tea brand, biryani or momo. We are definitely considering taking a serious legal route. As long as these aggregators are okay working with restaurants and enable restaurants to go quickly, we’re absolutely fine with it but we will not want to be demolished as an industry where they end up selling our similar products. This has not been allowed for even larger E commerce players operating in the marketplace.”
The association criticised the use of proprietary restaurant data to promote private-label products via platforms such as Blinkit Bistro and Swiggy Café, creating an unfair competitive advantage.
The NRAI also highlighted potential infringements under the Copyright Act, accusing the aggregators of misusing private-label practices and exploiting conflicts of interest. To counter this, the NRAI plans to file complaints with regulatory authorities and explore legal action to protect the interests of the restaurant industry. The association has urged restaurants, consumers, and regulators to unite in preserving a fair food delivery ecosystem.
