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Tough times ahead for Swiggy, Zomato; Restaurant body plans to launch loyalty app

Food aggregators Zomato, Swiggy to collect 5% GST from Jan 1

Food aggregators Zomato, Swiggy to collect 5% GST from Jan 1 

Restaurant body National Restaurants Association of India is planning to launch an app similar to the ones used by food delivery aggregators in an attempt to take on Swiggy and Zomato. NRAI aims to launch the app within two months amid an escalating faceoff between restaurants and delivery apps.

NRAI President Anurag Katriar said that they are looking to launch the app by August-September. "We are in the final stages of finalising details with an established tech partner to whom we are outsourcing the back-end management," he said, as mentioned in a report. NRAI represents over 5 lakh restaurants across the country.

The app will offer a loyalty programme to consumers to counter private aggregators. Consumers will not have to pay for the app, unlike in loyalty apps such as Zomato Gold. They will be able to encash loyalty points at restaurants for dine-ins.

At a time when the restaurant industry was completely dependent on deliveries, apps like Swiggy and Zomato amassed record profits.

However, NRAI has been protesting the deep discounts offered by private aggregators. On Monday, NRAI approached the Competition Commission of India and sought resolution in the matter.

Dwaipayan Bhattacharjee
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