India

Indian Food Apps Zomato, Swiggy Face Restaurant Revolt

India's service sector growth slumped below expectations to a six-month low in September with weak demand and rising inflation.. File photo: AFP.

Indian food delivery apps Zomato and Swiggy are facing a revolt from one of the country’s biggest fast-food chains over their high commissions.

Jubilant FoodWorks, India’s largest food services company, told the national competition regulator of its concerns affecting its 1,600 branded restaurant outlets, which include 1,567 Domino’s Pizza and 28 Dunkin’ Donuts outlets.

The restaurant giant said it would consider taking some of its business away from Ant Group-backed Zomato and SoftBank-backed Swiggy if their commissions rise further, according to a letter seen by Reuters.

Jubilant made a confidential filing with the Competition Commission of India (CCI), which is investigating alleged anti-competitive practices by Zomato and Swiggy.

The CCI ordered 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 and several other restaurants as part of its investigation, Jubilant sought more time to share data related to its online sales.

“In case of an increase in commission rates, Jubilant will consider shifting more of its businesses from online restaurant platforms to the in-house ordering system,” the company stated in its July 19 letter to the CCI.

Zomato said it had no plans to increase restaurant partner commissions. “No commercial decisions are unilaterally taken that may adversely impact our stakeholders.”

Jubilant declined to comment, while the CCI and Swiggy did not respond.

Reuters, with additional editing by George Russell

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.