Will Govt. Stop Zomato, Swiggy, Uber Eats From Offering Deep Discounts? Union Minister Looking Into This Matter!
From getting into matters concerning e-commerce giants like Flipkart and Amazon, the Minister of Commerce and Industry Piyush Goyal has now taken upon himself to mend into the problems related to online food aggregators like Zomato and Swiggy.
We had already filled you in that on 15th August, over 300 restaurants registered under the National Restaurant Association of India (NRAI) in Gurgaon decided to break their ties with food aggregators, under the #LogOut campaign. In just about 3 days, more than 1,200 restaurants in several major cities across India delisted themselves from the dine-in programmes of services like Zomato.
After the go-ahead from Goyal, the National Restaurant Association of India (NRAI) listed their grievances against the aggregators and handed it over to him on October 21.
The ministry is concerned about the effects of deep discounting practices on small businesses, therefore it has decided to look into the food aggregators as well.
Food Aggregators and Piyush Goyal
According to restaurants, heavy discounting offers on meal bills anytime, anywhere, any-day, by food aggregators and table reservation services, like Zomato, EazyDiner, Nearbuy, MagicPin and Gourmet Passport among others, deeply hurt the revenues of restaurants, as they suffered heavy losses.
Thus, in order to silently protest against this, over 300 restaurants registered under NRAI decided to break their ties with such aggregators, starting in Gurgaon. They called it the #Logout campaign. In just 3 days’ time, more than 1,200 restaurants in several major cities across India continued the trend and delisted themselves off the dine-in programmes and services.
Such unanimous step of a campaign and the multitude support it has received, show that restaurants across the entire spectrum have been suffering from the deep-discount epidemic.
The protest was backed by NRAI and also got massive support from the Federation of Hotel and Restaurant Association of India (FHRAI), along with several other associations such as Thane Hotel Association, Pune Restaurants & Hotel Association (PRAHA), Vadodara Food Entrepreneurs (VFE).
Zomato, in fact came up with a settlement too. Zomato closed down its Infinity Dining right before the final discussion with NRAI. Amidst all of this heat and calamities, Zomato decided to launch its Gold Membership plan for food delivery, just like the one it has for dine-ins. Not to say much but this is rather a bold move on Zomato’s part.