National Restaurant Association Defers Plan To Compete With Swiggy And Zomato

National Restaurant Association Defers Plan To Compete With Swiggy And Zomato

Hopes to align with Rapido, which recently expanded into food delivery

The National Restaurant Association of India (NRAI) has shelved its plans to onboard members onto the Open Network for Digital Commerce (ONDC), citing operational instability and a lack of strategic commitment from the platform.

The move marks a significant shift in stance from India’s largest restaurant body, which considered ONDC as a potential counterweight to food delivery giants Swiggy and Zomato.

The NRAI alleged that both platforms were engaging in private labelling through the launch of their 10-minute food delivery services, Bistro (by Zomato) and Snacc (by Swiggy), raising concerns about fairness and competition.

Early this year, the Association explored onboarding member restaurants onto ONDC, the government-backed initiative to unbundle digital commerce.

However, the NRAI has now opted to wait-and-watch, finding several buyer and seller apps that have made consumers unclear about what ONDC represents.

Also, ONDC has seen a shuffle at the top level and is awaiting some stability.

Recently, Thampy Koshy, the founding managing director and chief executive officer, stepped down after serving for three years. Thereafter, Shireesh Joshi, the Chief Business Officer and RS Sharma, the non-executive chairperson, exited the platform.

To serve the restaurant industry, ONDC must demonstrate a deeper commitment.

An officer of the platform remarked, “We do not want it to function merely as a coordination platform. It must have skin in the game. Presently, there’s a lot of complexity in how we operate, with many players pulling in different directions."

The setback came amid waning traction in ONDC’s food and beverage category, which saw a 10 percent month-on-month drop to 14 lakh orders in February. The plunge reflected a slowdown in retail, once considered its largest category.

From 47 percent of transactions in October 2024, it fell to 29 percent by March 2025. In contrast, mobility surged, growing from a 40 percent share to 56 percent.

The platform classifies its transactions into three segments: mobility (ride-hailing), retail (food, grocery, fashion, and electronics), and logistics. However, it has struggled to carve an identity.

Moreover, poor user experience, reduced consumer incentives, and intense competition from quick commerce platforms have battered its drive.

Meanwhile, NRAI is evaluating alternative aggregator platforms as potential channels for member restaurants. It includes Rapido, which recently expanded into food delivery.

The Association hopes for a restaurant-friendly ecosystem and if the platforms align with industry needs, they could emerge as credible alternatives.