Zomato delivery gone askew

Zomato is down in the red; slipping by over 4.5% to an intraday low at Rs.82.15. Its 52-week low is at Rs.75.55

The Competition Commission of India (CCI) today has ordered an investigation as the CCI feels there exists a “prima facie” evidence on account of delayed payment cycle, imposition of one-sided clauses and exorbitant commission.  

It has asked its director general to conduct a detailed inquiry into the accusations and submit a report within 60 days. This investigation is against Swiggy also.

CCI started this probe based on a complaint filed by the National Restaurant Association of India in July 2021, alleging data masking, deep discounting and violation of platform neutrality against Zomato and Swiggy.

Zomato was accused of charging approximately 27.8% of the order value from the restaurants listed on its platform. For cloud kitchen, the commission rate is as high as 37%.