Swiggy discussed 'Order Direct' pilot with NRAI before CCI complaint

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Swiggy is piloting an 'Order Direct' service with a few restaurants in Mumbai which will help fulfill orders where the customer discoverability is done by the restaurant.

Swiggy discussed 'Order Direct' pilot with NRAI before CCI complaint
Food ordering and delivery platform Swiggy is piloting an 'Order Direct' service with a few restaurants in Mumbai and had even discussed the feature with the National Restaurants Association of India (NRAI).
This comes after NRAI filed information with the Competition Commission of India (CCI) on July 1, 2021, against Swiggy and Zomato on alleged anti-competitive practices.
Swiggy is piloting the service which will help fulfill orders for restaurants where the customer discoverability is done by the restaurant.
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"We held talks with them a few weeks ago before we filed our information with the CCI," said Anurag Katriar, president of NRAI, "However, this is currently only an idea and there is nothing concrete. This is why we went ahead with our information to the CCI. Also, he stated that NRAI has been discussing the restaurant's concerns with both players for nearly two years.
Katriar said Swiggy's move to "unbundle" certain services for restaurant partners was "directionally good." TheCapTable was the first to report about Swiggy's new pilot on Wednesday. Swiggy did not respond to specific queries.
NRAI president said Swiggy could likely charge lower commissions of 3-4 percent per order through the 'Order Direct' service. NRAI said Swiggy and Zomato usually charge between 25-35 percent as commissions from restaurants. Other industry members said the average commission charged by these platforms is between 18-22 percent.
On July 1, the association has filed information with the CCI citing the following alleged practices: Bundling of services, data masking and exorbitant commission charged; price parity agreements; deep discounting: (NRAI cites forcing of restaurant partners to give discounts to maintain appropriate listing); exclusivity of listed restaurants; violation of platform neutrality, vertical integration and lack of transparency on the platform.
NRAI also filed additional information with the CCI on July 12.
Zomato co-founder Gaurav Gupta had dismissed NRAI's concerns as being 'misplaced' during an interview with CNBC-TV18 last week while announcing its IPO.

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