With hundreds of 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 matter with All the involved restaurant partners to Reach an amicable solution which Could benefit all the parties at the ecosystem.
The e-commerce space sooner faced similar allegations where small businesses accused Flipkart and Amazon of deep discounting impacting their sales in their online market.
The restaurant owners think that their businesses will be wiped out when the food delivery organizations are allowed to continue in the way they are functioning.
While denying that it conducts almost any in-house flats, Zomato, which lists over 80,000 restaurants around about 150 cities in India, argued that those spouses who are not delighted with the discounting programmes could just opt out.
“Discounts are merely a mechanism to promote user participation and our restaurant partners can decide to take part in a discounting effort,” that a Zomato spokesperson said in a statement.
“Zomato’s prime objective is to contribute to the growth of the restaurant industry in the nation, which we have been doing over the last decade with the help of our various services,” the announcement added.
The petition allegedly asked the CCI to”put a stop to unsustainable pricing by these businesses, prohibition of cross-holdings of meals services, delivery business to own or possess a bet in any kitchen/restaurant, and appointing food regulators to ensure that a level playing field isn’t breached in the garb of cutthroat competition”.
Zomato on Monday announced the introduction of cycles – both mechanical and electric – into its very last mile shipping fleet and said 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 next two years.
The spokesperson claimed that far from ruining the small and midsize restaurant industry as has been alleged by some, the firm had been”able to provide long-term growth for our restaurant partners by simply linking them with more customers”.
“In fact, a lot of our restaurant partners have been able to enlarge their operations since food delivery has assisted them exponentially manage the adjusted and man-power costs,” the spokesperson added.