From Giver to Snatcher: The Emergence of Dark Stores and Their Negative Impact on India’s Restaurant Industry

In recent years, India’s food delivery landscape has experienced a seismic shift. What started as a mutually beneficial partnership between restaurants and online platforms—such as Zomato and Swiggy —has evolved into direct competition, as these tech giants open their own “dark stores” to prepare and deliver food. This practice, while profitable for the aggregators, raises alarm bells for restaurant owners. Drawing insights from reports on Financial Times and Reuters , this blog delves into the darker side of dark stores, illustrating how these giants may have crossed the line from collaboration to competition—some say, by illegitimate means. 1. How They Began: A Boon for Restaurants When Zomato and Swiggy first entered the Indian market, they revolutionized food delivery. By offering: Wider Reach : Small and medium-sized restaurants suddenly had a platform to showcase their menus to thousands of potential customers. Seamless Delivery : Delivery logistics were handled by the aggreg...