With hundreds of restaurant owners sending a petition to the Competition Commission of India (CCI) alleging wrongdoings by Meals delivery companies, Zomato on Monday said it was discussing the matter with the Concerned restaurant partners to Reach an amicable solution which would benefit all the parties in the ecosystem.
The e-commerce space sooner faced similar allegations where small businesses accused Flipkart and Amazon of deep discounting affecting their earnings in their online market.
The restaurant owners think that their companies will be wiped out if the food delivery companies are permitted to continue in how that they’re functioning.
While denying that it conducts almost any in-house kitchens, Zomato, which lists over 80,000 restaurants across about 150 cities in India, argued that those partners that are not delighted with the blowing off programmes could just opt out.
“Discounts are merely a mechanism to promote user involvement and our restaurant partners can choose to participate in a discounting campaign,” a Zomato spokesperson said in a statement.
“Zomato’s prime objective is to contribute to the growth of the restaurant industry in the country, which we have been performing over the previous ten years with the assistance of our different services,” the statement added.
The request reportedly asked the CCI to”put an end to unsustainable pricing by these businesses, prohibition of all cross-holdings of food services, delivery company to have or possess a stake in any kitchen/restaurant, and appointing food regulators to make certain that a level playing field isn’t breached in the garb of cutthroat competition”.
Zomato on Monday announced the debut of bicycles – both mechanical and electrical – to its 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 two years.
The spokesperson claimed that far from destroying the small and midsize restaurant industry as has been alleged by some, the company had been”able to deliver long-term expansion for our restaurant partners by simply connecting them with more customers”.
“In actuality, a lot of our restaurant partners have managed to expand their operations because food delivery has helped them exponentially manage the fixed and man-power expenses,” the spokesperson added.