NRAI set to approach CCI over Zomato and Swiggy's 10-minute delivery apps

The NRAI is considering legal action and approaching CCI over Zomato and Swiggy's new 10-minute food delivery apps, citing anti-competitive practices and private labelling concerns

The National Restaurant Association of India (NRAI) is likely to approach the Competition Commission of India (CCI) to address concerns regarding Zomato and Swiggy's recent launch of standalone apps for 10-minute food delivery, according to a report by The Economic Times.

 

The NRAI is already pursuing a case with the antitrust regulator against both companies, accusing them of engaging in anti-competitive practices.

 

Zomato’s Blinkit and Swiggy recently introduced standalone apps, Bistro and Snacc, respectively. The NRAI alleges that this represents the operation of private labels by the companies, raising issues for restaurant partners, the news report said.

 

The report quoted NRAI President and Wow Momo Co-Founder and CEO Sagar Daryani as saying that the association strongly opposes Zomato and Swiggy engaging in private labelling and selling food directly through Blinkit’s Bistro app and Swiggy’s Snacc app for quick food delivery.

 

Daryani further said that he suspects that they are redirecting his customers to their private-label products, whether its tea, biryani, or momo. The NRAI is “seriously considering legal action”, he said.

 

In addition to Bistro and Snacc — which procure food and beverages from third-party vendors and deliver them through quick-commerce dark stores — both Zomato and Swiggy also offer 15-minute food delivery services by aggregating restaurants.

 

Swiggy’s restaurant-based quick food delivery, run under its Bolt model, reportedly contributes over 5 per cent of its total food delivery orders.

 

The report further quoted Daryani as saying that the NRAI opposes aggregators competing directly with restaurants.

 

Swiggy debuts 'Snacc'

 

Swiggy launched a new app called Snacc, designed to deliver snacks, drinks, and meals within 15 minutes. This launch comes amid a growing competition among Indian food delivery platforms to offer ultra-fast delivery services.

 

Zomato's quick-commerce subsidiary Blinkit too recently introduced "Bistro", a platform that promises delivery of snacks, meals, and beverages within 10 minutes.

 

In addition, Zomato has rolled out its own 15-minute food delivery service in select cities. A dedicated "15-minute delivery" tab is now visible on Zomato's explore page. The service focuses on quick-to-prepare, ready-to-eat meals sourced from select restaurants within a two-kilometer radius.