Zomato, a food delivery platform, has been summoned by a civil court in Delhi in response to a complaint filed by a Gurugram resident. The complainant alleged that Zomato was engaging in fraudulent practices by delivering fresh food from well-known restaurants in the national capital under its sub-category called ‘Dilli ke Legends.’
The complaint raised several questions regarding the food delivery service offered by Zomato. The complainant pointed out that the food was being picked up from a place where the restaurant did not have a branch, and it was not being delivered in the restaurant’s original packaging. The complainant also questioned the authenticity of the food and whether it was being prepared by the restaurant partner.
Zomato’s own blog from 2022 stated that ‘Legends’ orders would be delivered the next day, which contradicted the fast delivery times advertised by the company. In response to the complaint, the court has asked Zomato to appear in a civil suit seeking a restraining order against the foodtech giant for continuing to allow users to order “hot and authentic food” from “iconic restaurants” across the national capital.
The order was delivered from an unnamed location
The court has issued summons and notice of application in response to the complaint, which was filed as a “representative suit” for numerous affected individuals under the Code of Civil Procedure (CPC). The complainant, Sourav Mall, placed an order with three different eateries in Jama Masjid, Kailash Colony, and Jangpura on October 24 last year. After tracking the delivery partner, Mall found that the order was picked up from an “unknown and unnamed” place and not from the original restaurant.
The complainant called it “inexplicable” how Zomato managed to deliver from Delhi’s iconic restaurants to locations in Gurugram and Noida within 30 minutes. The plea also alleged that Zomato’s representation to users, customers or patrons about the food delivery service was intended to deceive the public at large.
The matter has been posted for further proceedings on March 20. In recent news, Zomato reported a consolidated profit after tax (PAT) of INR 138 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24), helped by a sharp growth in its quick commerce business. While the food delivery vertical still brought in a lion’s share of the total operating revenue, its revenue growth did not meet the company’s expectations. Zomato has stated that it is on track to meet its guidance of adjusted EBITDA break-even for Blinkit on or before the June quarter of the financial year 2025.
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