As though a spanner to expansion attempts of food-delivery giants, Swiggy and Zomato, the National Restaurants Association of India or NRAI has objected to the ambitious plans of food delivery aggregators to include or introduce 10-minute food delivery service, akin to their quick-delivery services.
Objection to the 10-Minute Frenzy
The food delivery and quick service paradigm has seen fierce competition emerge in recent quarters as the main players in the industry, namely Zomato, Swiggy and Zepto, are fighting each other tooth and nail to attain market supremacy.
SNACC – Food in Minutes by @Swiggy is here! A quirky, fun, and super-fast way to crush those hunger pangs. Let me tell you the story behind how we built this brand-new app in record time. 1/n pic.twitter.com/D2pl9W2S2q
— Saptarshi Prakash (@saptarshipr) January 8, 2025
In the recent past, Zepto, which started as a quick-service company has forayed into food delivery, with its 10-minute food-delivery platform, Zepto Cafe. Zepto Cafe unlike aggregrators (Zomato/Swiggy) produces and delivers its own items from its inventory.
Zomato Blinkit, with Blinkit Bistro and Swiggy with its Swiggy Snacc is seen as an attempt to do just that.
As @zomato & @Swiggy launch their own food services, restaurant association @NRAI_India hits back ‘We have been backstabbed by Swiggy and Zomato in a way. Sagar Daryani, @NRAI_India says
— Shereen Bhan (@ShereenBhan) January 9, 2025
We are absolutely not okay with #Swiggy & #Zomato getting into their own pvt labels for…
This has induced a new wave of competition in the market, with likes of Swiggy and Zomato looking to replicate the same, upping the ante. In addition, Walmart-owned Flipkart is also looking to heat up the market with its Flipkart 10 minutes.
Zomato - Relaunch of quick delivery of food
— sustainme.in®️ (@sustainme_in) December 14, 2024
Blinkit introduces Bistro: Zomato-owned Blinkit has launched a new quick food delivery service named Bistro to compete with rivals Zepto Cafe and Swiggy's Bolt. pic.twitter.com/n8SpEHW2dj
'Not Okay'
When it comes to the NRAI's objection, the association vociferously argued that this move by these companies stands to violate marketplace neutrality and undermines fair competition.
This in turn, according to teh industry body could lead to the decline of the industry at large.
In a statement the association said, “This strategy cannibalises the business of restaurants that rely on these platforms,”.
According to the NRAI, it also raises legal concerns under the Copyright Act.
The industry body with a nationwide membership of over 5 lakh has said that this move is not okay.
The industry body said that it would take legal action against and approach regulatory authorities in the matter.
Company shares On Thursday
On Thursday, Swiggy shares closed in red with a decline of 0.69 per cent or Rs 3.50, slumping to Rs 504.00. Meanwhile, Deepinder Goyal's Zomato also continued in red, closing at Rs 244.90, with a drop of 0.18 per cent or Rs 0.45 on Thursday.