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Wednesday 16 October 2019

Online food service and delivery aggregators cannot dictate commercials terms

The Federation of Hotel & Restaurant Association of India (FHRAI) has extended its support to the #Logout campaign initiated earlier in August 2019, by the National Restaurant Association of India (NRAI), against deep-discounting and unfriendly trade practices by online food service delivery aggregator #Zomato. The apex hotel industry body comprising HRANI, HRAWI, SIHRA and HRAEI along with several other associations viz. Thane Hotel Association, Pune Restaurants & Hotel Association (PRAHA), NHRA, Vadodara Food Entrepreneurs (VFE) have also come together and joined the #Logout movement.

Anurag Katriar, president, NRAI, “Coming together of the two national representative bodies of the industry is a very significant development meant to send out a strong message to the FSAs about their highly-detrimental and predatory trade practices. Several city-based and affiliated bodies joining the campaign strongly indicate that the pain is being felt across the entire industry and everyone is aligned together in this movement.”

While recognising the need for a peaceful co-existence of the hotel and restaurant industry with e-commerce aggregators, Katriar said, it is also very clear that the terms of engagement between the two sides have to be equal at all times.

Gurbaxish Singh Kohli, president, Hotel and Restaurant Association of India (HRAWI) and vice president, FHRAI said no one can usurp the role of the other, and aggregators cannot dominate the industry or conduct their business in a manner that is detrimental or negatively impacts the industry’s growth or profits.

“The group is further clear that these aggregators, who are heavily funded by private equity (PE) funds, have to recognise that their role is that of a ‘market-place and/or a service-provider’, akin to a travel agency or a discovery platform like Yellow Page of yore. Their role is to merely aggregate services of the industry; they 'do not' represent the hotel and food service industry. Therefore, they cannot decide or dictate commercials terms to and on behalf of the industry,” said Kohli.



Among specific issues and grievances pointed out by the united associations, against Zomato and others aggregators include: deep discounting, lop sided / oppressive contracts with arbitrary rule changes, high commissions, high penalties and unilateral changes to them, delayed payments and unreasonable penalties, unreasonable additional charges, unethical practices such as showing a restaurant closed when riders are unavailable, private labels, forced use of delivery services, unreasonable and arbitrary rules of engagement, non-transparency and inconsistency of search algorithms, imposed certification, data masking, employing coercive tactics by threat of drop in rating, breach of promise and changing goalposts (Zomato Gold is a classic example) and surreptitious attempts to collect customer data through schemes such as free Wi-fi etc.

“This group also unanimously agreed that the Zomato Gold is an extremely detrimental product for the industry and strongly opposes the same. It is clothed in such a manner that it misleads a few gullible members into disastrous consequences. The FSAs are slowly but surely gaining dominance with the help of massive funding being made available to them through venture funds and private equity capital, the funds are then used towards several unfair trade practices. As responsible industry bodies, we stand strongly to protect their interests,
said Katriar.

Having joined hands, according to Pradeep Shetty, vice president, HRAWI and joint secretary, FHRAI, the group of associations will not hesitate in embarking on a nationwide agitation and resistance against Zomato and others if its demands are not met within a stipulated time frame.

Initiating another campaign called #TakingBackControl the group of united associations has put together a five-point charter and send out a strong message to all FSAs that they should always consult them, never appease customers solely at their cost, always ensure their profit as FSAs ensure their GMV-led valuation, never police and compete with the food service business operators.

Through this five-pronged charter, the group clarified that tech start-ups masquerading as new age businesses are a mere digital extension of a traditional market place. The service providers offering aggregated services such as discovery and directory will henceforth be recognised by the industry as ‘ancillary service providers’.

“FHRAI along with its constituent bodies across India and NRAI is committed to educate its members and the food and beverages (F&B) fraternity at large, as well as the Government, media and most importantly its guests that it will in no way allow these ‘ancillary service providers’ to be considered as ‘partners’ which nomenclature has been conveniently abused to confuse everyone into thinking they represent the primary business of hospitality and food service,” said Kohli.

Bajaj's re-enters the scooter segment with Chetak's electric version


The makers of Chetak in its new avatar are calling it a marvel of riveting design, precision engineering and flawless manufacturing thus making it a global benchmark in electric scooters. As per Bajaj Auto, the pioneering product is a homage to a glorious past as well as harbinger of a promising future.

More than just a scooter, the original Chetak pioneered personal transportation and fulfilled the aspirations of generations of Indians. It enjoyed unprecedented popularity with waiting periods exceeding 10 years and a resale value greater than its purchase price! Over 1.3 crore Chetaks were sold in India and its popularity earned it the endearing sentiment of ‘Hamara Bajaj’. The new Chetak, however, is poised to lead Electric Vehicle (EV) adoption and transformation in India and across the world for a better ‘Hamara Kal’.

The EV flaunts an iconic design with a beauty as simple lines and smooth surfaces are woven together softly to create a classic style that democratises distinctiveness. The modern day scooter has been updated with exquisite detailing, the use of premium materials and finishes, and a choice of six eye-catching colours that embellish its familiar form to achieve exceptional visual delight and touch and feel quality.
Featuring a hypnotic horseshoe shaped LED headlight with DRLs, it comes with feather touch activated electronic switches and sequential scrolling LED blinkers. A large digital console intuitively displays vehicle information with crisp clarity. Moreover, fine craftsmanship is visible in the smallest of details - from handlebar grips, levers and mirrors, to the softly opening of the glove box and the damped seat closure mechanism.

At the heart of the vehicle is an IP67 rated high-tech Lithium Ion battery with NCA cells. The battery is easily charged using a standard household 5-15 amp electrical outlet. The on-board Intelligent Battery Management System (IBMS) controls charge and discharge seamlessly. Additionally, an elegant home-charging station is available at a nominal cost.

The Chetak offers two drive modes (Eco, Sport) and a reverse assist mode to ensure that all the demands of a rider are satisfied. Regenerative braking via an intelligent braking system that converts braking heat into kinetic energy helps maximise its range.

The scooter offers a fully-connected riding experience by virtue of being embedded with mobility solutions like data communication, security and user authentication that will enable customers to have a seamless ownership and riding experience. The Chetak mobile app gives the rider a comprehensive overview of all aspects of his / her vehicle and its ride history.

A rigid frame clad with sheet metal body panels and a tubular single sided suspension vest the Chetak with the uncompromising strength and durability that it is famous for. The powertrain similarly employs a unique single-sided cast aluminium swing arm which houses the traction motor that drives the wheel through a high-efficiency automated gear box.
Nitin Gadkari, minister of road transport and highways, Rajiv Bajaj, MD, Bajaj Auto Ltd and Amitabh Kant, CEO, Niti Ayog unveiling the all new Bajaj Chetak Electric Vehicle

The new Chetak will over 2020 find presence beyond the shores of India, across the relevant markets of Europe. It is born and bred to go beyond the objective of earning some valuable foreign exchange exporting our cost competitiveness towards a higher purpose of acquiring a fine reputation for our skills in the most ferociously competitive international arenas.


To be available in two variants, with each offering a range of 85 km and 95 km respectively, Bajaj Auto will officially launch the EV in January 2020. The company will also disclose the pricing and availability related details then.