Amazon’s food delivery and conflict with restaurants

Zomato currently has one close rival: Bengaluru-headquartered Swiggy. However, the food delivery segment in India has caught the interest of many new players, including American e-commerce giant Amazon, which entered the sector last year. While many view this move by Amazon as a potential threat for Zomato, Gupta said “food delivery is a large market and a fragmented one. And it’ll always have a space for healthy competition.”

The other immediate challenge for Zomato is the ongoing tussle between restaurant owners and food delivery platforms in the country. The National Restaurants Association of India (NRAI) has approached the country’s competition watchdog over alleged violation of laws by Swiggy and Zomato. NRAI has said that the firms are charging “exorbitant commissions” from restaurants and “masking” customer data from them.

Zomato said it cannot do anything to address the concerns as of now as it hasn’t received an official complaint yet. As of Dec. 31, Zomato had 350,174 active restaurant listings on its app and website.

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