Zomato and Swiggy Shares Fall Amid NRAI’s Concerns Over New 10-Minute Delivery Apps
Shares of food delivery giants Zomato and Swiggy took a hit on Friday, January 10, 2025, with losses of up to 3.7% on the Bombay Stock Exchange (BSE). Investors pulled back after reports surfaced suggesting that the National Restaurant Association of India (NRAI) is planning to approach the Competition Commission of India (CCI) to raise concerns over the companies’ recent launch of standalone apps for 10-minute food delivery.
By 10:07 AM, Swiggy’s share price had fallen 3.57%, trading at Rs 489.5 per share, while Zomato’s stock was down 3% at Rs 237.85 per share. This drop came amid broader market declines, with the BSE Sensex down 0.63% at 77,134.41. In total, 0.54 million shares of Zomato and 0.13 million shares of Swiggy changed hands on the BSE.
NRAI Raises Concerns Over Private Labeling
The NRAI has voiced strong opposition to the introduction of standalone apps, Bistro by Zomato and Snacc by Swiggy, which are designed to offer ultra-fast food delivery services. According to NRAI President Sagar Daryani, the association is particularly concerned that these apps might be diverting customers away from restaurant partners by promoting private-label products, such as tea, biryani, and momo.
Daryani hinted that the NRAI is “seriously considering legal action” against Zomato and Swiggy. He also expressed concern about the growing trend of aggregators, like Zomato and Swiggy, competing directly with restaurants in the food delivery space.
Quick-Delivery Services Stir Up Competition
Both Zomato and Swiggy have introduced quick-commerce services to meet the growing demand for faster delivery times in India. Swiggy’s Snacc app promises to deliver snacks, drinks, and meals within 15 minutes, while Zomato’s Blinkit subsidiary recently launched Bistro, which guarantees delivery of snacks, meals, and beverages in just 10 minutes.
This fierce competition for ultra-fast delivery has led to tensions in the industry, as food platforms are now not only delivering meals from third-party restaurants but also selling their own private-label food items. With the NRAI’s push for legal intervention, the debate over the role of aggregators in the Indian food delivery market is expected to intensify.
