7 in 10 believe private labelling by Zomato, Swiggy affecting their businesses: NRAI poll

New Delhi, Jan 22 About 70 per cent of people, who are part of the Indian hotel industry, believe that private labelling by the quick commerce platforms run by Zomato and Swiggy etc are impacting their businesses, and 69 per cent of them believe that they have no negotiation powers with respect to commissions, a poll by the National Restaurant Association of India (NRAI) showed on Wednesday.

Amid concerns over monopolisation by online food delivery platforms launching private labels and leveraging restaurant data, the NRAI which represents more than 5 lakh restaurants in the country organised a live poll with 8,000 people from across the country.

“India's food delivery industry is at a crossroads, with profitability, sustainability, and fairness being put to the test. While we welcome developments such as quick commerce in the food delivery space, we are deeply concerned about aggregators expanding into private labels, leveraging restaurant data, and competing directly with their own partners,” said Sagar Daryani, NRAI President.

This practice not only creates an unfair playing field, but it also undermines the trust that is at the foundation of this ecosystem. The lack of transparency in policies, rising commissions, and aggressive ad-driven visibility models are all contributing to restaurants' unsustainable position, he added.

While 92 per cent of those participated in the live poll believe that customer data is essential and necessary in bettering customer experience, 42 per cent say flexibility is needed when it comes to discounting.

Around 34 per cent of them believe that “Aggregators have stolen customers and have converted customers of restaurants into their own customers”.

Zorawar Kalra, NRAI Vice President said the restaurant industry is built on authenticity, experiences and value — none of which should be compromised by the cycle of deep discounting and unfair terms imposed by aggregators.

“While these platforms have undeniably expanded reach, their approach must align with the sustainability of the dining-out ecosystem. Collaboration is essential, but it must be fair and balanced,” he noted.

Source: IANS