Swiggy, Zomato slips up to 4%; is 10-minute food delivery raising concerns?

Food delivery platforms Swiggy and Zomato shares lost up to 3.7 per cent in Friday's (January 10, 2025) trade on BSE. Investors sold these new age companies' stock after reports suggested that National Restaurant Association of India (NRAI) is likely to approach the Competition Commission of India (CCI) to address concerns regarding Zomato and Swiggy's recent launch of standalone apps for 10-minute food delivery.

 

Around 10:07 AM, Swiggy share price was down 3.57 per cent at Rs 489.5 per share on BSE and Zomato share price was down 3 per cent at Rs 237.85 per share on BSE. In comparison, the BSE Sensex was down 0.63 per cent at 77,134.41. 0.54 million Zomto shares changed hand on BSE and  0.13 million Swiggy shares changed hands on BSE.

 

 

NRAI has alleged that the introduction of standalone apps, Bistro and Snacc, by Zomato and Swiggy respectively is raising issues for restaurant partners. 

 

The report quoted NRAI President and Wow Momo Co-Founder and CEO Sagar Daryani as saying that the association strongly opposes Zomato and Swiggy engaging in private labelling and selling food directly through Blinkit’s Bistro app and Swiggy’s Snacc app for quick food delivery.

  

Daryani also said that he suspects that they are redirecting his customers to their private-label products, whether it's tea, biryani, or momo. The NRAI is “seriously considering legal action”, he said.

 

The report further quoted Daryani as saying that the NRAI opposes aggregators competing directly with restaurants. 

 

In addition to Bistro and Snacc — which procure food and beverages from third-party vendors and deliver them through quick-commerce dark stores — both Zomato and Swiggy also offer 15-minute food delivery services by aggregating restaurants.

 

Snacc by Swiggy is designed to deliver snacks, drinks, and meals within 15 minutes. The launch came amid a growing competition among Indian food delivery platforms to offer ultra-fast delivery services. 

 

Zomato's quick-commerce subsidiary Blinkit too recently introduced "Bistro", a platform that promises delivery of snacks, meals, and beverages within 10 minutes.

 

Zomato and Swiggy are two of the most popular food delivery platforms in India. They both offer a similar service, allowing users to order food from a variety of restaurants and have it delivered to their doorsteps.