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WWW.HOSPITALITYBIZINDIA.COMNEWS BULLETIN 3For news updates and more information log on to www.hospitalitybizindia.com dailyHBI Staff | HyderabadThe National Restaurant Association of India (NRAI), representing the collective voice of the Indian restaurant industry, strongly opposes the recent foray of food delivery giants Zomato and Swiggy into quick commerce through private-label food delivery. This move undermines the principles of fair competition and poses a significant threat to the viability of thousands of restaurants across India.Zomato and Swiggy, originally established as marketplace platforms, are now leveraging their dominant positions and access to restaurant data to venture into private-label food delivery either directly or via their subsidiary. This strategy not only cannibalizes the business of restaurants that rely on these platforms but also raises serious concerns under the Copyright Act and related laws.Violation of Marketplace NeutralityAs marketplace platforms, Zomato and Swiggy were built on the premise of providing equal opportunities for all restaurant partners. Their entry into delivering food through private labelling and selling on their platforms and also delivering private labelled food via their own quick commerce platforms such as Blinkit Bistro and Swiggy Caf%u00e9 / Snacc fundamentally violates this neutrality, creating an uneven playing field. By monetizing data derived from restaurant partners, they are exploiting a conflict of interest that could decimate the very ecosystem they claim to support.Legal Recourse UnderwayThe NRAI views this as a clear case of misuse of private labels, infringing upon intellectual property rights under the Copyright Act. We are committed to pursuing all available legal remedies to safeguard the interests of the restaurant industry. This includes filing complaints with relevant regulatory authorities and initiating legal action to prevent Zomato and Swiggy from monopolizing the market.Speaking on the announcement, Sagar Daryani, President of the NRAI, said: Quick commerce in food is here to stay, grow and add more zing to the food delivery space. People want more convenience and so it will add an edge to the restaurants that can adapt to it. We are completely for it. What we are absolutely not okay with is Zomato and Swiggy doing private labelling and selling food by themselves. In Zomato via Blinkit%u2019s separate Bistro app and Swiggy launching Snacc for quick food delivery.They have all our data which they do not share with us. For us there is complete consumer masking. We have no reason to not believe them migrating our customer to the products they sell as private labels on their apps. Be it data from a tea brand, biryani or momo. We are definitely considering taking a serious legal route. As long as these aggregators are okay working with restaurants and enable restaurants to go quick, we%u2019re absolutely fine with it but we will not want to be demolished as an industry where they end up selling our similar products. This has not been allowed for even larger E commerce players operating in the marketplace.We were always given a verbal assurance by the aggregators that they would never resort to private labelling. This is definitely a breach of trust is what we feel. Our businesses will get severely impacted with these platforms launching their private labels.The NRAI calls on all stakeholders, including restaurants, customers, and regulators, to join hands in ensuring a fair and competitive food delivery ecosystem. Together, we can safeguard the future of India%u2019s vibrant culinary landscape. nNRAI grossly condemns Zomato & Swiggy doing private labelling and selling food by themselves through their Q Comm appsHOSPITALITY BIZ n JANUARY, 2025HBI Staff | HyderabadOYO Hotels and Homes Pvt Ltd, a major player in the hospitality sector, reported a net profit of INR 114.64 crore for FY24, marking a significant turnaround from the net loss recorded in FY23. This positive result underscores the company%u2019s first profitable year since its inception.However, OYO%u2019s operational revenue dropped by 15% to INR 1,112.83 crore as of March 2024, compared to INR 1,312.61 crore in the previous year. Similarly, the company%u2019s total revenue fell to INR 1,179 crore in March 2024, down from INR 1,400 crore in the same period last year.The company recorded an EBITDA of INR 153 crore for March 2024, a stark improvement from a loss of INR 204 crore in the prior year. This achievement marks OYO%u2019s first positive EBITDA since 2020.For FY24, OYO reported INR 5,388 crore in total revenue, reflecting a marginal decline of 1.37% from INR 5,463 crore in FY23. Despite the dip, adjusted EBITDA for FY24 soared by 215% to INR 877 crore, compared to INR 277 crore in FY23.The company%u2019s per-share earnings (EPS) also turned positive, with a gain of INR 0.36 per share in FY24, as opposed to a loss of INR 1.93 per share in FY23. Meanwhile, total expenses were reduced by 13% to INR 4,500 crore in FY24, down from INR5,207 crore in FY23. OYO significantly expanded its hotel portfolio in FY24, increasing its inventory to 18,103 properties, up from 12,938 in FY23. This growth was attributed to strong business performance, rising demand, and an improved market outlook.This turnaround in profitability follows eight consecutive quarters of positive adjusted EBITDA, underscoring the company%u2019s strategic focus on cost optimization and market expansion. nOYO Posts INR 114.64 Crore Net Profit in FY24 Despite Revenue Decline