More than 500 small and mid-sized restaurants filed a petition with India’s competition watchdog, Competition Commission of India (CCI), and Prime Minister’s Office (PMO)as well urging them to bring to an end the wrong pricing standards being adopted by online food aggregators.
Swiggy, Zomato, Uber Eats and OLA promoted FoodPanda are the food delivery companies, those misusing their dominance over the small and medium enterprises with an intention of wiping them out.
The charges contain the use of heavy discount, in-house kitchens and internal sourcing.These cited moves are part of their approach to eliminate small restaurants.However,Zomato and Swiggy have denied the charges on them.
Out of a number of instances of alleged wrong practices by these food aggregators, the petition says, “They (Zomato) have started an in house company called Hyperpure. This company sells vegetables, chicken and other meat. Zomato forces the restaurants who want to list on the Zomato platform to purchase raw vegetables, chicken and other meat from this company only. This is clearly against clause 6 A of the Competition Act.”
Zomato offers food delivery to restaurants and compelling restaurants to procure raw stuff from their own sister concern.So the petition urges on its appeal to bring an end to unethical pricing by online food aggregators.
About Swiggy,they started off as food delivery platform,but now they started their own kitchen to keep domination of the market by unprofessionally diverting customers to their own kitchen,the petition states.They use the customers visiting the platform for food delivery to their own kitchen.To get the products listed on the platform, a standard shopper has to pay huge tariffs.”
When Uber eats and Foodpanda, not responded to the petition, Zomato and Swiggy have responded,but strongly denying the charges upon them.
As clarified by both these companies, discounts are part of their approach to draw customers and promote participation. Indeed, the partner restaurants — those issuing the complaint — can also connect in the discount campaigns as said by the Zomato spokesperson.
The petition to the CCI is the most recent impediment these online food delivery platforms facing.However they are already being audited by the FSSAI for food safety and quality standards.
