Domino's India may shift business away from delivery firms Zomato and Swiggy
The Hindu
The disclosure was made by Jubilant FoodWorks, which runs the Domino's and Dunkin' Donuts chain in India, in a confidential filing with the CCI
Domino's Pizza India franchise will consider taking some of its business away from popular food delivery apps, Zomato and SoftBank-backed Swiggy, if their commissions rise further, according to a letter seen by Reuters.
The disclosure was made by Jubilant FoodWorks, which runs the Domino's and Dunkin' Donuts chain in India, in a confidential filing with the Competition Commission of India (CCI) which is investigating alleged anti-competitive practices 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 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 sought more time to share data related to its online sales, but wrote to the watchdog expressing concerns over potentially higher commission of food-ordering platforms.
"In case of an increase in commission rates, Jubilant will consider shifting more of its businesses from online restaurant platforms to the in-house ordering system," the company stated in its July 19 letter addressed to the CCI.
Jubilant FoodWorks declined to comment, while the CCI and Swiggy did not respond.
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