Never miss a story

Get subscribed to our newsletter


×
Founded in 1982, the NRAI represents the interests of over 5 lakh restaurants. Pixabay

After waging an all-out war against steep discounts by online food aggregators in the dine-in segment, the National Restaurant Association of India (NRAI) has now asked delivery platforms to do away with deep discounts while addressing other issues.

The NRAI wrote to Swiggy, Zomato, Uber Eats and Food Panda on Monday to resolve the issues.


In letters written to all major online delivery aggregators, the association has said that during its interaction with restaurant operators, it was observed that operators displayed strong resentment at the current status of transparency, forced discounting, uneven commission structure and general high-handedness of the aggregators in the food delivery space.

“There was a high demand of immediately extending the #Logout movement to the delivery vertical as well. However, our responsibility as an industry body compelled us to engage in dialogue first,” the letter said.

As in the case of dine-in services, the industry body complained about discounts being offered in the delivery segment throughout the year.

“Discounts are a privilege and are extended on occasions. However, in the current environment, deep discounts, ranging from 30-70 per cent, are being deployed 365 days of delivery platforms.”

This distorts the market and hinders profitable growth of the sector. These discounts are not sustainable nor are they beneficial to the industry at large,” the letter said.


The NRAI will very soon initiate movement against online delivery aggregators which are affecting the sustainability and growth of the restaurant industry. Pixabay

The association reiterated its stand that these discounts are mostly funded by restaurant operators and sometimes under “veiled coercion”.

The letter also spoke of uneven commission charges. It said these charges are predatory and delivery service providers revised the charges unilaterally.

“These commissions or charges are not standard by any nature, rather they are exploitative and bereft of rationale. We request you to create a transparent system of commission or charges based on certain logical metrics such as AOV (Average Order Value), Volume of Business etc,” NRAI said in a letter.

The association also noted that the aggregators do not share customer data with restaurants despite repeated requests and also sought assurances that the data would not be monetised.

It further observed that “big delivery aggregators are using the sales and customer data to develop their own brands, their own kitchens and diverting traffic thereby creating a grossly unfair playing field with other restaurants.” NRAI described this behaviour as a conflict of interest on the part of the aggregators.

Anurag Katriar, Head of NRAI Mumbai Chapter, said: “Let me reiterate that we are not against the technology platforms, but our concerns are largely around these aggregators misusing their dominant position to indulge in predatory behaviour; commercially and in forming the terms of engagement.”

Also Read: India Driving More Revenue Per User for Social Media Firms: Report

Over the last 11 days, restaurants across the country led by the NRAI carried out the ‘#logout’ campaign against deep discounts provided by food service aggregators (FSAs) in dine-in services, and a lot of the restaurants have logged out of the services of the aggregators.

NRAI has struck a deal with Dineout, Eazydiner, Nearbuy and Magicpin to make favourable changes to their model and charges, as the four have agreed to rejig their products to do away with deep discounting. Zomato, which provides the Zomato Gold platform for dine-in services has stopped engagement with NRAI on after it had made some changes which did not go down well with he restaurants association. (IANS)


Popular

IANS

K'taka Hijab Row Triggers Debate.

By M.K. Ashoka

The issue of wearing a hijab (head covering worn in public by Muslim women) to the colleges along with the uniform has sparked a debate in Karnataka over religious practices impacting the education system in the state. The matter has also snowballed into a controversy on whether the hijab could be considered as part of the uniform. The ruling BJP is deliberating on whether to take a call on allowing hijab as part of the uniform of college students. State Education Minister B.C. Nagesh, while opposing the wearing of hijab to classrooms, has said that a decision would be taken on the issue soon by the government.

The experts as well as students are divided over the issue. Those who are in favour state that the dress code in classrooms should not indicate faith or religion as it creates barriers between students as well as teachers. Those who support the wearing of hijab say that hijab should be treated as a scarf. Hijab is black in colour and it can't be a religious symbol as Islam is identified with the green colour. The hijab should be treated as a symbol of chastity, they maintain.

The denial of permission to six girls in the Government Girls' Pre University College in the communally sensitive district of Udupi in the state has created a controversy. Nagesh dubbed it as a political move and questioned whether centres of learning should become religious centres. Meanwhile, the girl students have decided to continue their protest until they are allowed to attend classes wearing hijab.

Keep Reading Show less

Police have come under sustained attack around the country. | Unsplash

An Indian-American police officer, who has been on the job for just over six months, is being hailed a hero for rushing to neutralize a gunman who shot a police officer and wounded another. Sumit Sulan, 27, shot the assailant who surprised the officers opening fire on them in his mother's flat on January 21 where police were called because of a domestic dispute. Jason Rivera, 22, was killed and Wilbert Mora, 27, was wounded, but Sulan who was in the police party advanced and shot the alleged gunman, Lashawn McNeil, 47, according to police.

Also Read : Police in Spain distribute masks to commuters

Keep Reading Show less
IANS

The most common allergen in India are milk, egg and peanuts.

By Dr Nidhi Gupta

Motherhood comes with its own mixed bag of emotions; we want to save our child from every little peril that comes their way, including allergies. The most common allergen in India are milk, egg and peanuts. According to the IAP survey, 11.4 per cent children under the age of 14 years suffer from some form of allergies and they usually peak around the month of May.

The symptoms of allergy range from runny nose, sneezing, coughing, rashes, watery and red eyes to swollen tongue and breathing difficulties. A child experiences serious discomfort and it leaves the parents hopeless at times. Allergies develop slowly over time; parents need to have patience and commitment towards managing them. However, there are certain ways in which we, as parents, can contribute in prevention and possible alleviation of the problems.

* Do Not Stress

Staying stress-free and calm is very important during this time. Creating panic will only add to the misery. Once we know about the symptoms, our mandate must be to keep a first-aid antiallergic kit at home. We can make this kit with the help of our paediatrician.

Keep reading... Show less