Sunday September 15, 2019
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NRAI Asks Delivery Platforms to do Away with ‘Deep Discounts’

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

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zomato, NRAI
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.

Zomato NRAI
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)

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NRAI To Initiate Movement Against Online Food Delivery Apps

NRAI plans fresh movement against online food aggregators

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

With more than 2,500 restaurants now logged out against the deep discounting practices of online food aggregators across the country, the National Restaurant Association of India (NRAI) on Saturday said it will soon begin a more intense movement to stop “unethical” practices being adopted by online food apps like Zomato Gold.

“The NRAI will very soon initiate movement against online delivery aggregators which are affecting the sustainability and growth of the restaurant industry,” it said in a statement.

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

Sounding the bugle for bitter days ahead, the restaurants’ body headed by Rahul Singh has locked horns with Zomato CEO Deepinder Goyal who himself has announced to log out of the #logout campaign.

On Friday, Singh hit back at Goyal by starting a new campaign #ZoGoisNoGo.

“We thank Dineout, Eazydiner, magicpin and Nearbuy for rejigging their features to eradicate the deep discounting epidemic.

“However, Zomato has decided to cut all ties through a statement of their assertion of logging out of the logout campaign. From our end, that simply implies #ZoGoisNoGo,” Singh said in a statement.

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

A Zomato spokesperson reacted: “We stand by our 10-point improvement plan that addresses the collective concerns of our restaurant partners while keeping our users’ best interests in mind.”

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Zomato has been accused by the NRAI of “unethical” deep discounting practices for its “Gold” prgramme. The magicpin and Dineout have already come out in Singh’s support.

The NRAI on August 14 announced the #logout movement to detox customers from discount addiction and give restaurant industry freedom from aggregators who have “distorted a vibrant marketplace by aggressive discounting and predatory pricing”. (IANS)