Food delivery startups are killing independent restaurants
Food delivery apps are more harmful than useful. Heavy discounts and coercive tactics by the food delivery startups are harmful for…
Food delivery apps are more harmful than useful. Heavy discounts and coercive tactics by the food delivery startups are harmful for independent restaurants.
Brief:
Swiggy, Zomato, Food Panda and Uber Eats are hurting local restaurants.
500 local restaurants have petitioned Competition Commission of India ( CCI) and Prime Minister’s Office ( PMO).
How are they hurting local businesses?
Food delivery firms distort markets by offering deep discounts.
Restaurants claim that startups force restaurants to purchase vegetables and meats from them.
Startups have set up in house kithens such as Zomato’s Hypersure, Swiggy’s Bowl Company and Faasos. They promote their kitchen more.
How does it impact the restaurant owners?
Lower price means the costs go higher.
Also, the commissions are lower.
Restaurants shut down, leaving the faceless cloud kitchens or virtual kitchens.
Delivery also impacts the quality of food.
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