Zomato,  Swiggy,  Uber Eats,  Food Panda In Trouble Over Deep Discounts

Zomato, Swiggy, UberEats, and Foodpanda - Sakshi Post

A petition was filed with the Competition Commission of India (CCI) and Prime Minister’s Office (PMO) by close to 500 small and mid-sized restaurants. They have objected to some practices by the food delivery companies, which include Zomato, Swiggy, UberEats, and Foodpanda alleging that they are misusing their dominant position in the market.

The small restaurants pleaded with CCI to stop the unsustainable pricing standards being followed by these online food aggregators such as the heavy discount offers. The petitioners petitioners claimed that these unhealthy practices are taking away the consumer traffic away from them to these online platforms.

They even accused in the petition that the food companies are coming up with in-house kitchens, affecting the local restaurant businesses.

The food aggregators are restricted from foreign direct investment (FDI). Unlike the Amazon and Flipkart. However, the CCI is going to meticulously examine the exploitative activities as a source from the National Restaurant Association of India (NRAI) points.

He added that a roundtable meeting has been fixed with the food aggregators in the following week to address the issues raised in the petition.

On one hand, Zomato and Swiggy denied the allegations made on them in the petition. On the other hand, UberEats and Foodpanda gave no response to the petition.

Both the companies said discounts are a means to lure customers and boost the participation. They added that the partner restaurants, who are issuing the complaint can be a part of the discount campaigns.

Swiggy defending its actions stated that it has been fair to the restaurant community and almost doubled the restaurant partners on its platform, thereby adding customers to their business rather than taking away.

The petition to the CCI is not only the recent obstacle that the mobile-app food delivery platforms are facing. They are already being audited by the Food Safety and Standards Authority of India (FSSAI) for food safety and quality standards.

Also Read: Swiggy Acquires Scootsy for Rs 50 Cr

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