Zomato, Swiggy renegotiates exclusivity contracts with restaurants

BENGALURU: Zomato and Swiggy have begun renegotiating exclusivity contracts with a slew of restaurants citing a downward impact on business due to the ongoing pandemic, said multiple people aware of the move. This could further exacerbate strained relations between the food delivery platforms and restaurants.

Evoking the force majeure clause that frees both parties from liability when an extraordinary event occurs, Zomato and Swiggy are redrawing exclusivity and minimum guarantee clauses in their contracts with local restaurants as well as national chains, the people cited above said.

“With some of the top cities being closed for more than two months (leading to) multiple operational challenges and order volumes touching an all-time low, honouring these agreements is unviable,” said a venture investor aware of the developments.