Zomato & Swiggy Update: In the coming days, you may think of ordering Domino’s Pizza on the app of online food delivery company Zomato and Swiggy, but you may not get the pizza you want. In fact, Jubilant FoodWorks, the franchise company of Domino’s Pizza India, which runs Domino’s and Dunkin Donuts retail chains in the country, should stop taking orders from Zomato and Swiggy’s online apps. This disclosure has been made by Jubilant Foodworks itself in a confidential filing submitted to the Competition Commission of India. Let us tell you, the Competition Commission of India is investigating the alleged anti-competitive practices of Zomato and Swiggy.
Jubilant Foodworks is India’s largest food service company with 1,567 Domino’s and 28 Dunkin’ outlets. In fact, the CCI had ordered an inquiry against Zomato and Swiggy in April after a group of restaurant companies alleged favoritism, exorbitant commissions and anti-competitive practices. However, Zomato and Swiggy have denied any wrongdoing.
According to media reports, after CCI sought answers from the Domino’s India franchise and several other restaurants during its investigation, Jubilant this month told CCI that 26-27% of its total business comes from online platforms. Including its own mobile application and website. In a letter to the CCI dated July 19, the company said that, due to higher commission rates, Jubilant would consider shifting its business from an online restaurant platform to an in-house ordering system. This warning from Jubilant Foodworks comes after Zomato and Swiggy have been accused of favoritism by many restaurants in India.
The CCI launched the investigation following a complaint from the National Restaurant Association of India, which has over 500,000 members. The association alleged that 20% to 30% commission is charged by Zomato and Swiggy which is impractical.