Deepinder Goyal has reached out to the restaurant partners of the company to alleviate the tensions through an email, as per the media reports
Responding to the concerns raised by the restaurant industry bodies regarding the newly introduced standalone 10-minute food delivery apps, the Co-founder and Chief Executive Officer (CEO) of Zomato, Deepinder Goyal has reached out to the restaurant partners of the company to alleviate the tensions through an email, as per the media reports.
Goyal stated that Bistro, an instant food delivery app by Blinkit is not a private label and will not be competing with the restaurant partners. Media reports which stated having seen the email added that the CEO highlighted that Bistro is a separate app and its menus are curated using publicly available information. He added that all Zomato data and insights are accessible through Zomato Trends to all restaurant partners as well as the public.
The media reports added that Goyal reassured that Zomato, being a restaurant aggregator, would never compete with its own restaurant partners. Earlier, Goyal highlighted that the new app did not pose an existential threat to restaurants. In his clarification, Goyal, as per the reports, added that Bistro would barely be 0.5 per cent of the market if even at 1,000 outlets. However, he also added that scaling Bistro is not the goal of the experiment.
The National Restaurant Association of India (NRAI) has opposed the recent foray of food delivery giants Zomato and Swiggy into quick commerce through private-label food delivery. The body stated that this move undermined the principles of fair competition and posed a significant threat to the viability of thousands of restaurants across India.
NRAI added that Zomato and Swiggy, originally established as marketplace platforms, are now leveraging their dominant positions and access to restaurant data to venture into private-label food delivery either directly or via their subsidiary.
