Never miss a story

Get subscribed to our newsletter


×
Zomato in a smartphone device. Pixabay

The deep discounts doled out by the online food aggregators are cannibalising dine-in restaurants and the burden is shifting to restaurants, interim findings from a report by the Competition Commission of India (CCI) has found.

Restaurants also feel that online food aggregators are using data taken from them to promote their own ‘Cloud Kitchens’ and are increasing the commission charged unilaterally and arbitrarily, the findings showed.


The online platforms, however, denied the charge, saying they do share the data with restaurants.

The country last month saw a bitter war between the National Restaurant Association of India (NRAI), the restaurants’ trade body, and online food aggregators like Zomato Gold, over deep discounting practices.

According to the CCI study, restaurants said that online platforms’ search ranking algorithms are opaque, non-transparent and ads are interspersed with organic results.

Platforms argued this is not the case and organic listing are distinguishable from advertised listing.

The CCI’s study on e-commerce in the country also found that restaurants earned around 28 per cent of their revenue through online platforms.


Founded in 2014, Swiggy claims to have 50,000 restaurant partners.

“Nearly 78 per cent respondents have online presence and 69 per cent went online between 2016 and 2018 on three platforms on average,” said the study.

While restaurants blamed dual role of platforms, the online platforms said they are bridging the supply-demand gap and are helping partner restaurants scale up and giving more choice to consumers.

The NRAI said on August 30 that there is an in-principle agreement between the association and the two major online delivery platforms, Zomato and Swiggy, to resolve the issues of the industry including deep discounts.

Also Read: Huawei Commits to Provide the Most Advanced 5G Products: Report

However, Zomato is hellbent on carrying on with its plans to make its contentious Gold programme now available for delivery.

The CCI study mentioned that restaurants are “compelled to use online platforms’ hired fleet and there are restrictions on using their own fleet”.

The platforms said the use of their fleet is an efficient exercise and there are no restrictions on restaurants to use their delivery network. (IANS)


Popular

IANS

As the economy continues to recover from the prolonged pandemic.

By Rohit Vaid
The Centre might bestow infrastructure as well as industry status to new sectors to boost several pandemic hit industries in the upcoming Union Budget. Industry insiders said that several sectors and sub-industries such as hospitality, automobile retail, specific diganotics facilities and companies engaged in installation of EV charging stations amongst others might get the status.
The infra tag will enable these sectors to avail tax breaks, incentives and credit on lower interest rates. "Sectors which are in greenfield or which would need capex augmentation to help them overcome the pandemic can be looked from the lens of an infrastructure sector," said Jagannarayan Padmanabhan, Director and Practice Leader, Transport & Logistics, Crisil Infrastructure Advisory. "Also many of the already identified sectors need a sustained policy push which will help them get visibility both in terms of quantum and the time period of applicability."

Till now, activities associated with laying of power and telecom transmission and distribution lines, roads, highways, railways and construction of facilities such as hospitals, affordable housing, power generation units, water treatment plants, SEZs and certain type of hotels amongst others were given such status.

Besides, these sectors are a part of harmonised master list for infrastructure sub-sectors. However, in April 2021, exhibition-cum-convention centre was included in the list. "Given the focus around electric vehicle, and need for significant investment in charging stations, if the government adds the sector in infrastructure list, the benefits arising out of it will be significant," said Vishal Kotecha, Director, India Ratings and Research. "Infra tag on sectors increases ability to raise funds, access to dedicated funds and lenders, foreign capital, lower interest rates among others."

Electric car Given the focus on electric vehicles, the advantages of including the industry in the infrastructure list will be enormous. Free SVG

Keep Reading Show less
Wikipedia

A team is working to produce safest medicine for covid treatment.

A team led by chief scientist Ravi Shankar, is working on two combinations to provide the safest medication to coronavirus patients. "Experts say that a combination of antivirals with different mechanisms can be more effective to counter the viral pandemic. We are working on two combinations - Umifenovir with Molnupiravir (an antiviral) and Umifenovir with Niclosamide (anti-parasitic)," he said.

Also read: Antiviral Remdesivir Receives FDA

Molnupiravur drug has received only Emergency Use Authorisation in India and abroad. Though its usage showed reduced hospitalisation during clinical trials, its biggest drawback are the side-effects, he added.

"Now, we are trying to keep a low dosage of Molnupiravir in its combination with Umifenovir which may weed out the side-effects such as the risk of cartilage and muscle damage. If successful, it will make Umifenovir more effective in Covid-19 treatment," said the chief scientist. The other combination is Umifenovir with Niclosamide.

Keep Reading Show less
Wikipedia

MEA Jaishankar instructed Indian envoys to Canada and the US, "to urgently respond to the situation."

External Affairs Minister S. Jaishankar on Friday instructed Indian envoys to Canada and the US, Ajay Bisaria and Taranjit Singh Sandhu, "to urgently respond to the situation" where four Indian nationals including an infant have lost their lives on the US-Canada border. The minister said this in a public tweet. Neither of the two missions have responded on the microblogging site till the time of filing of this report.

In a statement Thursday without identifying the victims, the Royal Canadian Mounted Police (RCMP) stated that "on the morning of January 19, 2022, RCMP officers with the Integrated Border Enforcement Team received concerning information from their counterparts in the United States".

Royal Canadian Mounted Police (RCMP) RCMP officers received concerning information from their counterparts in the United States.Wikipedia

Keep reading... Show less