- The NRAI plans to approach the CCI over concerns that 10-minute delivery apps like Zomato's Bistro may misuse customer data.
- Blinkit CEO Albinder Dhindsa stated that Zomato won’t promote Bistro on its main app to ensure fair competition with restaurant partners.
The National Restaurant Association of India (NRAI) is reportedly planning to approach the Competition Commission of India (CCI) to raise concerns about standalone 10-minute food delivery platforms launched by major food delivery companies. The move highlights ongoing tensions between foodtech platforms and restaurant partners over issues like data transparency and competition.
In response to these developments, Blinkit CEO Albinder Dhindsa clarified that Zomato, Blinkit’s parent company, will not use its main app to promote private brands that might compete with its restaurant partners.
Dhindsa also emphasized that the newly launched Bistro, Zomato’s 10-minute food delivery initiative, will not be marketed on the Zomato app to avoid any potential conflicts of interest. While acknowledging the financial implications of this decision, he stated that ethics must take precedence.
"All the companies innovating with us on Bistro also work with a number of restaurants, and our success at Bistro has the potential to add value for the entire food & restaurant ecosystem," Dhindsa wrote in a post on X (formerly Twitter).
Also, as @deepigoyal has always said, Zomato will never launch private brands on the Zomato app to compete with its restaurant partners. This still holds true. Which is why this service is not being built within Zomato (the organisation which runs the brand, or the app). This is… https://t.co/q79x4vZJsR
— Albinder Dhindsa (@albinder) January 10, 2025
Bistro, currently operating in select areas of Gurugram, functions as a standalone app distinct from Zomato and Blinkit. Dhindsa described this approach as an effort to find the right product-market fit without affecting the company’s core platforms.
The NRAI, however, has expressed concerns over the recent launch of quick delivery services like Bistro and Swiggy’s Snacc. The association alleges that food delivery giants could potentially leverage customer data to divert orders to their own offerings, disadvantaging partner restaurants.
Previously, NRAI called for industry status for the food services sector, urging the government to ensure fair practices. The association has accused foodtech platforms of anti-competitive behavior, including high commissions, delayed payments, and restrictive contractual terms.
Edited by Harshajit Sarmah
