'Privacy risk, hope govt stops this': Zomato, Swiggy face backlash over data-sharing with restaurants

Food delivery platforms Zomato and Swiggy are facing criticism from political and industry voices after reports that they plan to share customer data with restaurants. Shiv Sena leader Milind Deora and marketing expert Suhel Seth have both raised concerns about privacy and potential misuse of customer information.

Deora said on Thursday, "So, @zomato & @Swiggy plan to share customer mobile numbers with restaurants. This opens the door to privacy risks & further spam under the guise of ‘better service’. We need clear, unambiguous opt-in guidelines, in line with the new #DPDP Rules, so consumers’ data is respected."

Seth also criticised the proposal, posting, "Totally bloody unacceptable! I hope the Government doesn’t allow this AT ALL. Next they will share our food habits with all and sundry!"

The Economic Times reported on Thursday that Zomato was in final talks with the National Restaurant Association of India (NRAI) to share customer information - a move that could end a nearly decade-long dispute between aggregators and restaurants over access to user data. 

NRAI president Sagar Daryani confirmed similar discussions with Swiggy, saying it's "very important for us to know our customers...not to spam them, but to know their ordering habits and make proper marketing spends."

Zomato has reportedly begun rolling out a consent-based feature allowing customers to choose whether to share phone numbers with restaurants to "receive marketing and promotional updates." The issue stems from NRAI's complaint to the Competition Commission of India (CCI), accusing Zomato and Swiggy of "anti-competitive practices such as data masking." 

The association represents over five lakh restaurants across India and has long argued that platforms' control over consumer data undermines transparency and direct relationships with diners. Restaurants say access to anonymised data — such as order size, preferred cuisines, and local demand — would help improve marketing efficiency.

The timing coincides with a new player entering the space. Rapido's food delivery arm, Ownly, has already signed a data-sharing agreement with NRAI, agreeing to provide eateries with customer insights.

However, critics warn that expanding data access without strong safeguards could expose consumers to privacy violations and spam. A senior executive from one food aggregator admitted that previous attempts to share customer data had "received negative feedback from users," prompting platforms to limit such practices.