NRAI calls on restaurants to adopt ONDC to counter 10-minute delivery by Zomato, Swiggy

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The senior leadership of the National Restaurant Association of India (NRAI) urged member restaurants to get on board Open Network for Digital Commerce (ONDC) to counter the duopoly of food delivery platforms Swiggy and Zomato, adding that the industry body is taking all measures including approaching the courts, the Competition Commission of India (CCI), as well as reaching out to the government to prevent standalone 10-minute delivery apps by these players.This was said at a two-hour long townhall meeting between NRAI’s senior representatives and member restaurants on Wednesday.

ET reported earlier that NRAI plans to approach the courts to seek intervention on Zomato and Swiggy operating standalone 10-minute food delivery apps – arguing that these amount to private labelling.

“We have been conducting an experiment with ONDC in Bengaluru, and now almost 20% of overall food delivery orders in the city are coming from ONDC,” said Sagar Daryani, president NRAI, and founder of quick service restaurant Wow Momo.

“We need a third alternative for food delivery…and brands on ONDC (such as Magicpin and Ola) charge commissions only to the extent of 3-4%. Each player is responsible only for the service that they offer and so there are cost efficiencies which result in lower commissions,” he said.


Also Read: Zomato CEO Deepinder Goyal writes to restaurants addressing concerns over 10-minute food delivery

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Representatives from NRAI, senior executives from ONDC as well as restaurant firms and delivery companies such as McDonald’s, Box8, Magicpin and Ola held discussions on Tuesday. These deliberations took place around restaurants increasing their presence on ONDC.In addition to issues around food delivery, at the townhall, several restaurateurs also flagged the push by Zomato and Swiggy on their dining-out offerings, where they are asking eateries to use the platform’s payment gateway services if they choose to enable table reservations from the app.

“Platforms today are bundling payment gateway services with table reservations…(they are saying) if you don’t take my payment gateway, you won’t get the table reservation (offering). This is problematic,” said Thomas Fenn, partner at New Delhi-based restaurant chain Mahabelly. “We must insist on delinking…payment gateways from table reservations,” he added.

Zomato and Swiggy offer the option to their users to make payments at restaurants through their apps, where customers are offered discounts either by the platform or banks and credit card issuers.

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