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HospiBuz Desk 

Government to Summons Zomato and Swiggy and others over heavy discounting and predatory pricing.

Almost a week after Commerce and Industry Minister Piyush Goyal roasted foreign e-commerce companies in a meeting, the Department for Promotion of Industry and Internal Trade (DPIIT) has directed online food delivery firms such as Zomato and Swiggy to address the issues in the food services ecosystem, according to sources latrine to the development.

The meeting will take place in the evening on July 4 and will also see in attendance states from the offline industry, including National Restaurant Association of India (NRAI), South India Hotels and Restaurant Association and Hotels and Restaurants Association Western India, besides Uber Eats and Foodpanda.

The meeting will be chaired by Ramesh Abhishek, secretary, DPIIT, Ministry of Commerce and Industry.

“The forum will present a platform for food services aggregators and restaurant industry associations to consider mutual areas of interest, recognise challenges and develop viable solutions that shall pave the way to boost impartial growth in the industry,” said the department in the invite sent to the stakeholders.

Despite, according to sources, the central issue that will be discussed is likely to be predatory pricing and opening up of private label brands by the foreign-funded online delivery firms which have been affecting the businesses of offline restaurants.

In his meeting held on June 24, Goyal made it loud and clear that the ministry would not tolerate any violation of Press Note 2 which barred e-tailers from granting discounts or determining prices of the items sold in any form or manner.

This meeting is a follow-up of the last week’s wherein the online food delivery firms will be made to face the offline restaurants to expedite a two-way communication on the table.

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