Zomato to open up customer data for restaurants; Swiggy could be next

In a major strategic pivot, food delivery giant Zomato is in final discussions with the National Restaurants Association of India (NRAI) to share customer data with restaurant partners, potentially resolving a nearly ten-year-long conflict. The NRAI confirmed that similar talks have also commenced with Zomato’s primary rival, Swiggy.

The dispute centers on "data masking," a practice where aggregators hide customer details from restaurants. This potential agreement marks a significant victory for the NRAI, which has long argued that lack of data access hinders restaurants' ability to build direct relationships with their patrons.

Key Developments:

Consent-Based Sharing: Zomato has begun rolling out a feature requesting user consent to share phone numbers with restaurants for specific "marketing and promotional updates."

NRAI’s Stance: NRAI President Sagar Daryani stated that the goal is not to spam customers, but to understand ordering habits and optimize marketing spend using the correct funnel.

The Rapido Factor: The move follows a precedent set by urban mobility startup Rapido, whose new food delivery arm, Ownly, recently signed a deal with NRAI agreeing to share customer data, placing pressure on incumbents.

The Core Conflict & Regulatory Backdrop For years, the NRAI has accused aggregators of anti-competitive practices, specifically data masking, deep discounting, and high commissions (rising from 5-7% to nearly 35%). The association had previously dragged both platforms to the Competition Commission of India (CCI), where the matter remains pending.

Restaurants argue that access to data points—such as ticket sizes, cuisine preferences, and locality-specific trends is essential for their consumer interface strategies.

“Swiggy and Zomato have masked consumer data for a very long time. Access to consumer data is crucial... to help customize offers and promotions.” — Senior Executive, Global Quick Service Chain

Industry Response Platform executives have historically resisted sharing data, citing negative user feedback regarding privacy. However, sources indicate that the current proposal involves strict guardrails. "We are working... to ensure the scope for the use of data that is being shared is limited and well defined," a senior executive from a food delivery platform noted.

Market Context According to a recent report by Bernstein, the stakes are high:

Market Size: India’s food delivery market is valued at $10 billion for fiscal 2025.

Growth: The sector grew by 15% over the previous year.

Reach: Zomato averages 327,000 monthly active restaurants, while Swiggy averages 264,000.