FHRAI writes to govt; calls for urgent intervention alleging concerns over food delivery platforms

Industry body Federation of Hotel & Restaurant Associations of India (FHRAI), which represents 60,000 hotels and five lakh restaurants, on Wednesday wrote to the Department of Commerce, Ministry of Commerce & Industry, expressing “concerns over Zomato and Swiggy’s private label food delivery and data misuse.”

The lettersaid the hospitality industry has “strong objections” to Zomato and Swiggy's recent moves into private labelling, food manufacturing, and the sale of such products through quick commerce apps Blinkit, Bistro, Swiggy Cafe and Snacc.

“We believe these developments constitute a significant violation of e-commerce regulations, principles of marketplace neutrality and fair competition,” the letter, signed by K Syama Raju, president of the FHRAI, said.


The association said some of its key concerns were ‘violation of marketplace neutrality, restaurant partners facing reduced visibility and skewed consumer redirection towards private labels.

The letter further alleged “misuse of proprietary restaurant data”, adding that Zomato and Swiggy have access to detailed consumer and restaurant data, such as demand patterns, popular cuisines, and pricing strategies. “By leveraging this data to create and promote their private-label brands, they are exploiting a clear conflict of interest,” it said.

It also said many private-label offerings mimic popular dishes or formats from established restaurant brands, infringing on intellectual property rights.

The letter urged ‘urgent government intervention’ to address what it claimed was regulatory oversight, enforce marketplace neutrality and prohibit platforms from competing with their partners by introducing private labels.