FHRAI raises concerns over Zomato and Swiggy’s private-label food delivery

The aim of raising this issue is to address the growing concerns about the misuse of restaurant data by food delivery platforms

The Federation of Hotel & Restaurant Associations of India (FHRAI), the third largest hospitality association in the world, has expressed serious concerns over Zomato and Swiggy’s recent move to enter the private label food delivery business. The association points out several issues, including unfair competition, restaurant data misuse, and potential food safety risks. Zomato and Swiggy are now using their market dominance to compete directly with the businesses they were meant to support. FHRAI is set to meet with the Ministry of Commerce to discuss these concerns and push for regulatory action to ensure fair practices in the food service industry. 

The aim of raising this issue is to address the growing concerns about the misuse of restaurant data by food delivery platforms and the unfair competitive advantage these platforms now hold over restaurants. By leveraging data from restaurants, such as customer preferences and sales trends, Zomato and Swiggy can create personalised deals that directly impact the restaurant’s business. This not only threatens the livelihoods of small and medium-sized restaurants but also raises questions about data privacy and consent.