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July 25, 2022

Domino’s India franchise may reduce reliance on food delivery platforms

Jubilant FoodWorks operates more than 1,600 locations in India, including 1,567 Domino's restaurants.

Jubilant FoodWorks, the holder of the Domino’s Pizza franchise in India, will reportedly consider reducing its reliance on key food delivery platforms if commission rates are increased.

Reuters reported the move, citing a confidential filing by Jubilant FoodWorks with the Competition Commission of India (CCI).

This comes roughly three months after the CCI ordered a probe to investigate alleged anti-competitive practices by popular delivery apps Zomato and Swiggy.

As part of the investigation, the commission sought a response from Jubilant FoodWorks.

In the letter, the franchise expressed its concerns regarding commission rates.

The news agency quoted the company as saying in the letter: “In case of an increase in commission rates, Jubilant will consider shifting more of its businesses from online restaurant platforms to the in-house ordering system.”

Jubilant FoodWorks operates more than 1,600 locations in India, including 1,567 Domino’s restaurants. It also operates Dunkin’ Donuts outlets in the country.

The company refused to comment on Reuters’ queries, while Swiggy did not respond.

However, Zomato has said that there are no plans to increase restaurant partner commissions at the top end.

The food delivery business in India has grown in recent years, following a surge in the use of smartphones along with attractive discounts.

In May, Swiggy agreed to acquire the restaurant table booking app Dineout, which has more than 50,000 restaurant partners.

The food delivery company also raised $700m in January to fuel growth.

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