Hotel Industry Raises Red Flag Against Zomato and Swiggy's Private Labels

The Federation of Hotel & Restaurant Associations of India (FHRAI) has voiced concerns over Zomato and Swiggy's entry into the 'private label' food delivery domain. FHRAI accuses the platforms of unfair competition, data misuse, and compromising food safety, urging regulatory intervention. NRAI supports FHRAI, citing potential market monopolization.

The Federation of Hotel & Restaurant Associations of India (FHRAI) has raised alarms about Zomato and Swiggy's recent moves to establish private label food products, demanding urgent regulatory action due to fears of unfair competition, data misuse, and potential food safety risks.

FHRAI expressed that these food delivery giants, initially designed to connect eateries with consumers, are now exploiting their dominance to challenge the very businesses they once supported. Utilizing confidential restaurant data to craft exclusive deals, these platforms, according to FHRAI, threaten small and medium-sized restaurant livelihoods.

FHRAI's Vice President, Pradeep Shetty, indicated plans to meet with the Commerce Ministry to tackle the issue. This sentiment resonates with the National Restaurant Association of India (NRAI), which expressed opposition to private labeling by Zomato and Swiggy, hinting at potential regulatory measures.

(With inputs from agencies.)