The Domino’s Pizza India franchise is planning to take some of its business away from popular food delivery apps, Zomato and SoftBank-backed Swiggy if they further increase their commission.
The revelation was made by Jubilant FoodWorks, which runs the Domino’s and Dunkin’ Donuts chains in India, in a confidential filing with the Competition Commission of India (CCI), which is investigating alleged anti-competitive practises of Zomato and Swiggy. Jubilant is India’s largest food services company, with more than 1,600 branded restaurant outlets, including 1,567 Domino’s and 28 Dunkin’ Donuts outlets.
The CCI ordered in April its probe into Zomato and Swiggy after an Indian restaurant group alleged preferential treatment, exorbitant commissions, and other anti-competitive practices. The food delivery apps deny any wrongdoing.
After the CCI sought responses from Domino’s India franchise and several other restaurants as part of its investigation, Jubilant told the watchdog this month that 26-27% of its total business in India was generated from online platforms, including its own mobile application and website.
In the event of an increase in commission rates, Jubilant will consider shifting more of its businesses from online restaurant platforms to the in-house ordering system.
With the rising use of smartphones and attractive discounts on offer, food delivery platforms have become increasingly popular in India. Jubilant’s warning comes as Zomato and Swiggy face accusations by many restaurants in India that their alleged practices hurt their business.