Zomato & Swiggy Shares: How Are The Stocks Of Two Delivery Giants Reacting To Restaurant Body's Legal Challenge?

After a formal warning earlier this month, the National Restaurant Association of India (NRAI), the restaurant body with a major representation throughout the country, has claimed that it is readying to mount a legal challenge against Zomato and Swiggy.

NRAI Takes On Delivery Giants

This challenge comes against the companies and their highly ambitious 10-minute food delivery avenues. Swiggy's SNACC and Zomato's Blinkit Bistro are an attempt to replicate the model used by their own quick-service companies.

It is also an answer to the rapidly expanding Zepto Cafe, which offers food delivery in 10 minutes.

Now, the association has decided to take these companies to court. The NRAI held a meeting on Wednesday. According to these companies, enterprises that offer these 10-minute food delivery services are an existential threat to all of their members.

The NRAI is a powerful organisation with a nationwide membership of over 5 lakh.

May Partner With ONDC

The association vociferously argued that this move by these companies stands to violate marketplace neutrality and undermines fair competition.

In addition, The industry body is also mulling over approaching the Competition Commission of India (CCI) to express its concerns over the 10-minute delivery model of Swiggy and Zomato.

The NRAI is also looking at giving tough fight to Zomato and Swiggy by exploring alternatives.

In the bargain, the group is also looking at collaborations with the government-owned open network for digital commerce (ONDC) and other private companies like Magicpin and Ola.

Shares Of Zomato & Swiggy On Thursday

When we look at the shares of these two companies involved. Both of them are trading in bright green, as far as the intraday session on Thursday, January 23 is concerned.

At the time of writing, Zomato shares, after a period of lull previously, i trading in green.

The Deepinder Goyal-led company made gains of 1.76 per cent or Rs 3.80. This took the overall of the Zomato shares to Rs 220.25 per piece.

When we look the shares of Swiggy, the gains made in the trading session are even greater. The Swiggy shares zoomed by over 4 per cent, only to expand its surge further.

At the time of writing, the surge of Swiggy shares stood at 5.26 per cent or Rs 22.80. This took the overall value of Swiggy shares to Rs 456.50 per piece.