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      Domino India to Consider Shifting Business Away From Zomato and Swiggy Over Rising Commissions

      Domino’s Pizza India franchise will consider taking some of its business away from popular food delivery apps, Zomato and Swiggy, if their commissions rise further, as per reports.

      This disclosure was made by Jubilant FoodWorks, which runs the Domino’s and Dunkin’ Donuts chain in India, in a confidential filing with the Competition Commission of India (CCI) which is investigating alleged anti-competitive practices of Zomato and Swiggy.

      Jubilant is India’s largest food services company, with more than 1,600 branded restaurant outlets including 1,567 Domino’s and 28 Dunkin outlets.

      The CCI order in April its probe into Zomato and Swiggy after an Indian restaurant group alleged preferential treatment, exorbitant commissions and other anti-competitive practices.

      The food delivery apps deny any wrongdoing.

      After the CCI sought responses from Domino’s India franchise and many other restaurants as part of its investigation, Jubilant told the watchdog this month that 26%-27% of its total business in India was generate from online platforms, including its own mobile application and website.

      A spokesperson for Jubilant FoodWorks decline to comment, and the CCI did not immediately respond.

      Zomato, back by China’s Ant Group, and Swiggy also did not respond.

      With the rising use of smartphones and attractive discounts on offer, food delivery platforms have become increasingly popular in India.

      Jubilant’s warning comes as Zomato and Swiggy face accusations by many restaurants in India that their alleged practices hurt their business.

      The CCI case was spark by a complaint from the National Restaurant Association of India, which has more than 500,000 members, and alleges that commissions charge by Zomato and Swiggy in the 20% to 30% range were “unviable”.

      ALSO READ  Google Accuses CCI of Ordering Changes to Its Business Model to Protect Amazon | Details Inside

      A senior industry executive with direct knowledge said that Zomato’s and Swiggy’s commissions were a concern for Domino’s and many other restaurants.

      As per executive :

      “If commissions are increased further, they will lead to profit squeeze of businesses and will simply be passed on to consumers,”.

      Before the investigation was announce, Zomato told the CCI it negotiates and charges commissions from restaurants but they had no bearing on how listings appear on its app.

      Swiggy state that its commissions were determine by factors such as a restaurant’s popularity or the volume of orders.

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