Dine-in restaurants are being cannibalized in regards with the deep discounts allotted by the online food aggregators. Competition Commission of India (CCI) reports that this is shifting burden on to the restaurants.
Restaurants feel that the aggregators are working based on the data driven from them to promote their own ‘cloud kitchen’ and the study informed that they are increasing the commission charged unilaterally and arbitrarily.
However, the online aggregators didn’t agree with the above statement, mentioning that they do share data with dine-inrestaurants.
Previously there was an issue between National Association of India (NRAI) and few online food aggregators over the discounting practice.
The CCI study also informed restaurants saying that online platforms search ranking algorithms are not transparent and the ads are mixed with organic results.
