With Countless restaurant owners sending a petition to the Competition Commission of India (CCI) alleging wrongdoings by food delivery companies, Zomato on Monday said it was discussing the Issue with All the involved restaurant partners to achieve an amicable solution which Could benefit all the parties at the ecosystem.
The petition, initially reported in January, accused Swiggy, Zomato, Uber Eats and Foodpanda of misusing their dominant positions by participating in practices such as deep discounting, in-house kitchens and inner sourcing.
The e-commerce space earlier faced similar allegations where small businesses accused Flipkart and Amazon of heavy discounting impacting their sales on their online market.
The restaurant owners believe that their companies will be pumped out when the food delivery organizations are allowed to continue in the way that they’re functioning.
While denying that it runs almost any in-house kitchens, Zomato, which lists over 80,000 restaurants around about 150 cities in India, argued that those partners who aren’t delighted with the blowing off programmes could just opt out.
“Discounts are only a mechanism to encourage user participation and all our restaurant spouses can decide to participate in a discounting effort,” a Zomato spokesperson said in a statement.
“Zomato’s prime objective is to contribute to the growth of the restaurant business in the country, which we’ve been performing over the last ten years with the help of our various services,” the statement added.
The request allegedly asked the CCI to”put a stop to unsustainable pricing by these businesses, prohibition of cross-holdings of meals services, delivery business to have or have a bet in any kitchen/restaurant, and appointing food regulators to make certain a level playing field is not breached in the garb of cutthroat competition”.
Zomato on Monday announced the debut of bicycles – both mechanical and electric – into its very last mile delivery fleet and stated that it had been working towards raising the scale of e-cycle adoption with the goal of converting 40 percent of our fleet to power-assisted bikes within the following couple of years.
The spokesperson argued that far from ruining the little and midsize restaurant industry as has been alleged by some, the firm had been”able to deliver long-term growth to our restaurant partners by linking them with more customers”.
“In actuality, a lot of our restaurant partners have been able to expand their operations because food delivery has helped them exponentially manage the fixed and man-power expenses,” the spokesperson added.