One step closer: Talks with online food aggregators progressing well, says NRAI

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Published: September 17, 2019 1:59:54 AM

Last month, NRAI had shot off letters to food delivery platforms Swiggy, Zomato, Uber Eats and Foodpanda expressing concern over “predatory market practices” resorted to by them.

online food, online food aggregator, NRAI, Swiggy, Zomato, delivery verticalsThe meeting was a follow-up to the first discussion held last month.

The National Restaurant Association of India (NRAI) on Monday said that talks with online food aggregators Swiggy and Zomato on issues related to business models of their delivery verticals have progressed well.

In a meeting held last week, both companies presented concrete road map and apprised NRAI of the advancement made so far, the association said in a statement. The meeting was a follow-up to the first discussion held last month.

Last month, NRAI had shot off letters to food delivery platforms Swiggy, Zomato, Uber Eats and Foodpanda expressing concern over “predatory market practices” resorted to by them.

The NRAI had listed eight issues in the letter and had called for consultation with the online platforms on the same. The restaurant body said food delivery firms engage in steep discounting, which goes up to as much as 70% throughout the calendar year, hampering businesses of restaurants. Further, NRAI said restaurants were being charged “uneven and arbitrary” commission on the net bill value of the food by the delivery platforms. The body suggested commissions should be determined on the basis of logical metrics like average order value (AOV) or volume of business.

NRAI is slated to meet later this week in Mumbai to “deliberate upon the progress made in the talks with these aggregators and subsequently decide the next course of action,” the association said. In a statement, Zomato said: “We continue to have discussions with NRAI on all issues faced by industry and are focused on providing solutions sustainable for all participants.”

Swiggy said recent discussions with the NRAI on the various projects had been well received and had brought the firm one step closer to achieving combined goals. However, the restaurant body said that no progress was made on Zomato Gold. The food delivery firm is planning to introduce Zomato Gold in the delivery vertical as well. The body is firm on opposing the gold service in either dine-in or delivery segment.

Last month, over 1,000 restaurants across the country delisted themselves from dine-in programmes offered by online food and restaurant reservation platforms as part of ‘logout’ campaign led by NRAI. Zomato, however, walked out of the campaign. NRAI added that Zomato, however, had put the infinity dining programme in abeyance till further notice.

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