Distorting small business with capital

I can share with proof how companies like swiggy and zomato are clearly funding consumer discounts which my understanding is that they cannot per FDI rules of India.

The problem with this is that small restaurants or ones that do their own delivery (like my family’s) will basically get wiped out.

One dominos who supplies via swiggy will give large cheese pizza for 200 and the one who delivers directly for 400.

Competition commission needs to step in. I am sharing this because polls in food aggregator services have been done in the circle. more  

View all 16 comments Below 16 comments
Dear madam, It is beyond my comprehension how an item valued at some rate can be delivered at a discount by the service company. At best, the restaurant can give at a discount to customers receiving the goods due to economy of scale if quantity sold is high. The delivery service company to my knowledge earns small amount per item, which becomes economical only when several items are delivered. This cost of delivery is part of the rate that customer pays. Even if this overhead is higher for small operators, they have great advantage in other operating overheads. If you are not able to compete, you need to find reasons and solutions rather than expecting government to protect you. more  
Ms Fernandez, I am a small restaurant owner myself. You need to explain your post more clearly. If Dominoz supplies Pizza at Rs 400 if a customer buys direct (online to their website?) and Rs 200 if they buy via Swiggy, that is their business - a weird and lunatic practise for a company. What does this have to do with you? If you supply pizzas which are the same as Dominoz - or mine, for that matter - you obviously charge the same or less - or make something else. These big chains make commodity items, and we, in small restaurants can make so many dishes which the chains cannot and will not do. I really have never cared about these chains, and competing with them is not at all required. I do not compete with darshinis either. more  
Small restaurants are critical to the food chain! They serve hundreds of millions of consumers, directly they employ millions of people, and their supply chain also employs millions. Last year when COVID had started, I had brought this to the attention of various authorities, unfortunately nobody understood the impact of this sector. See, if small restaurants die out, millions of people will be forced to go hungry. Not everyone can afford to eat in Grade 1 restaurants. Many small suppliers will also fade away, affecting in turn their ecosystem of farmers, small industries, transporters etc. The small restaurants create a competitive environment to large restaurants and offer a great choice for the consumers. We should support small restaurants and now, Government has announced some working capital loans for the hospitality sector but most small restaurants will not have bank credit and so will not qualify. Please support the small restaurant in your neighborhood, even if you have to pay a few rupees more. more  
Exactly. Daily Weekly Paid irrespective of Cast and Profession suffering A Lot since 14 months. No Ration No Free Pack to these People. Absolute INJUSTICE BY STATES AND GOI . more  
Time has come to be competitive. The fittest will survive unless it is supported by any quota or the one is working in a Govt. Institution. In good food joints still there is huge rush and the clients stand in long queues to get token. more  
Decentralising delivery through enabling technologies allows for greater economies of scope and scale. Excess production too gets sold, leveraging the likes of swiggy and zomato, that would otherwise go waste. Nobody doing charity, yet everyone, including customers benefiting from the efficiencies in sharing services using technology. There is also greater transparency as customer can see prices, within the app, from various pizza chains such as Dominos among the many existing ones, thereby getting competitive prices. Adopt technology for betterment. more  
Post a Comment

Related Posts

    • Study the attached price rise and lower taxes

      How prices of essentials have risen in last 10 years. Middle class is badly hit because earnings have not grown in this proportion. Middle class needs to thrive in India so that th...

      By RN Chopra
      /
    • Vehicle Sales Declining

      2 Wheelers Sales Down By -19.96% YoY Total Vehicle Sales Down By -15.26% YoY Even Basic Motorcycle is Taxed at 28% in India People Need Relief From High Taxes on Ne...

      By Swati M
      /
    • GST on used cars will impact dealers/online platforms

      And in turn prices for consumers who buy from such platforms Let me clear some myths on GST on used cars. Example 1: You buy a car for 15 lacs. Use it for 2-3 years and s...

      By Sanjit Jha
      /
    • Clowns in Paradise

      Really pissed off. Time is ticking - already effectively, nearly 15% of the 3rd term is over (because you can't do anything in last few months leading up to elections). And the Government appears t...

      By Sudesh Rai
      /
    • Clueless parliamentarians of India

      Successful countries talk about their present. Struggling countries keep talking about their past. China talks about its dominance in the EV industry. China talks about trains that run ...

      By Ruchika L Maheshwari
      /
    • Why tourism sector is broken in India

      There is an easier hypothesis why holidays in India have become Ultra expensive. Most of the luxury hotels in India are not a source of livelihood for the people who run them. It is not ...

      By Satvik Singh
      /
    • Major squeeze in middle class

      Our savings rate is at 5 decade low. Our consumption of even essential FMCG goods has slowed down. Two key essentials of every kitchen - wheat and oil, hugely impacted by infl...

      By Radha Puri
      /
    • Rampant Milk Adulteration

      Over 21700 kilos of chemicals recovered from the factory of Ajay Agarwal of Agarwal Traders of Bulandshahr. 500 liters of milk can be prepared from 1 kg of chemical. One man in one city. In the e...

      By Ashima Gupta
      /
    • Electric Cars in India

      Our friends undertook a Bengaluru to Hyderabad journey in an all Electric car attempting to be at mercy of roadside EV Charging Stations. They left Bengaluru at 230 pm and reached Hyder...

      By Shikha Chhabra
      /
    • Lost Decade of India

      Basic problems India had in 2014:- - Corruption - Reservation - Pollution - Lack of jobs - Not growing fast enough to build genuine wealth Basic proble...

      By Rohit Garg
      /
    • Tourism in India

      I am a yoga expert who has spent considerable amount of time learning the same in India. Many of my friends are unsure about visiting India because of visa process and then having to figure out how...

      By Ashley Jones
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)