Swiggy, a food delivery start-up, has integrated Dineout, a table booking platform, into its app, expanding its dining-out service to all users. The integration comes after the National Restaurant Association of India (NRAI) urged its members to log out of the Dineout app, citing deep-discounting issues. The service is now available in more than 18,000 restaurants across 24 cities, including Delhi-NCR, Mumbai, Bengaluru, Pune, Chennai and Hyderabad.
Dineout, founded in 2012, allows diners to access discounts and deals while eating out. The start-up was acquired by Swiggy in May 2022 for $200 million from its previous owner, Times Internet. After the deal, the founders joined Swiggy and continued to lead the operations of Dineout as an independent entity.
The dine-out market is a lucrative one, with commissions in excess of 15 per cent. Swiggy and Zomato, another food delivery giant, have a cumulative market share of 90-95 per cent, setting terms and commissions for restaurants listed on their platforms. However, restaurants fear that food-tech players could eat into their margins.
Swiggy has ramped up its offerings at a time when it is facing tough competition from Zomato. A recent report highlighted that Swiggy is fast losing market share to Zomato, despite heavy discounts.
Dineout's co-founder, Ankit Mehrotra, said the integration would create a seamless experience for all Swiggy users and significant savings on their dining-out expenses. The service was previously only available to subscribers of Swiggy One, the company's membership initiative.
The NRAI's deep-discounting issues have led to friction between food-tech players and restaurant owners. In October 2022, more than 400 brands and 900 dining outlets across 13 cities sent delisting notices to Swiggy. The NRAI claimed that food-tech giants were eating into the margins of outlets.