Misuse of dominant position by food delivery companies - Swiggy, Zomato, Uber Eats etc
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Prime Minsters Office (PMO)
New Delhi, India.
The Restaurant and Eateries
Subject: Misuse of dominant position by food delivery organizations - Swiggy, Zomato, Uber Eats and Food Panda.
The above listed companies have been continuously found to misuse their dominant position with the aim to wipe out small and medium enterprises. The instances are listed below:
1)Zomato: They have been offering unsustainable discounts below the cost price to customers. This is to ensure that small restaurants and eateries suffer losses and shut down. We have pasted some of their unsustainable offers below.
2)Zomato: They have started an in house company called Hyperpure. This company sells vegetables, chicken and other meat. Zomato forces the restaurants who want to list on the Zomato platform to purchase raw vegetables, chicken and other meat from this company only. This is clearly against clause 6 A of the Competition Act.
3)Swiggy: They are unethically diverting customers to their own kitchen. They started off with food delivery platform. Now they have started their own kitchen to monopolize the market.They use the customers visiting the platform for food delivery to their own kitchen. A normal client is required to pay huge tariffs to get their products listed on the platform. However the first advertizement which is shown to an end user on log in is Swiggys in house Kitchen - The Bowl Company. This clearly misusing customer database who visit their platform to order food to their own kitchen. There should be a clear law in India that there cannot be cross holding of a company which is into delivery of food services for clients to have a stake in any kitchen/restaurant.
Uber-Eats: Uber Eats too has been found to be offering unsustainable discounts on some deserts.
We would request you to kindly investigate these issues. These organizations seem to harm the Honorable Prime Ministers dream of having large number of entrepreneurs and his various programs of Start Up India and Stand Up India. The idea behind these organizations bringing in large war chest of funding by their foreign contributors is to close down small and medium size restaurants. We all favour foreign investments as long as it leads to innovation and growth in their respective sectors. These so called “MNC”s seem to have the aim of converting our country into a nation of “delivery boys” and “kitchen coolies”. If the funding is only used to target small and medium businesses it ll harm our country in the long run.
Our main request/s from you are:
1)Put an end to unsustainable pricing by these so called “MNCs”.
2)Ban any cross holding between one provider and another in the same supply chain. Ex Swiggy offering food delivery to restaurants and having their own kitchen.
Zomato offering food delivery to restaurants and forcing restaurants to purchase raw items from their own sister concern.
3)Appointing a food regulator in every province by the food and civil supplies ministry to ensure that the level playing field in never breached in the garb of cut throat competition.
We have decided to bring this issue to the notice of the honorable Prime Minister and Competition Commission of India as it affects millions of eateries/food joints/restaurants across our nation.
Thanks and Regards
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