Food delivery platform Zomato is facing intense criticism after announcing plans to begin sharing customer phone numbers with restaurants, sparking urgent concerns over privacy and data protection. The move, confirmed as “opt-in” only and requiring explicit consent, marks a dramatic turn in an ongoing dispute between restaurant operators and delivery giants such as Zomato and Swiggy. Restaurateurs argue that access to customer contact details will enable better service and nurture long-term relationships, but several political leaders, privacy advocates, and consumers have labelled the plan as “unacceptable and risky.” Their primary concern: potential exposure to spam, misuse, or unauthorized secondary marketing, with critics noting the blurred lines between legitimate service and intrusive outreach.
Lawmakers and Experts Speak Out:
The backlash swiftly grew after Rajya Sabha MP Milind Deora called for explicit, unambiguous opt-in guidelines in line with the Digital Personal Data Protection (DPDP) Act, warning that Zomato and similar platforms must respect consumer rights and privacy. Prominent business columnist Suhel Seth went further, warning the move could pave the way for broader misuse, such as sharing food habits and personal details with third parties. Privacy analysts point out that while Zomato’s approach technically hinges on explicit user permission, the nature and transparency of consent remain contentious. In practice, users may be unaware of how their information could be leveraged for promotional campaigns or resold to marketers, especially with limited ability to retract their approval once given.
Restaurants Welcome, Customers are Cautious:
The National Restaurant Association of India (NRAI), which represents more than 500,000 restaurants, has long advocated for the data-sharing innovation, arguing that platforms had previously limited access in order to gain market dominance. NRAI claims that direct client communication beyond the platform’s hidden numbers will enable eateries to better use marketing funds, customize services, and handle order problems. Similar systems are apparently being investigated by Swiggy, and agreements have been reached by Ownly, Rapido’s delivery division, to share customer data with consent. This puts an end to a ten-year struggle, although attempts in the past have been thwarted by customer skepticism and spam worries, underscoring a significant gap between industry aspirations and consumer expectations.
Positive Impact on Restaurant Operations and Customer Engagement:
With Zomato’s new data-sharing initiative, restaurants gain direct access to customers’ phone numbers, enabling them to enhance service quality and customer satisfaction. This development allows eateries to clarify orders, resolve issues promptly, and personalize promotions based on actual consumer behavior, bridging the communication gap created by previous platform restrictions. According to industry experts, restaurants can now better allocate marketing resources and develop loyalty programs with accurate customer insights. While the feature is currently in pilot phase and based on user consent, it promises to reshape the food delivery ecosystem by fostering deeper customer relationships and enabling restaurants to compete more effectively in a rapidly growing market.
Data Protection and Regulatory Scrutiny Loom Large:
Zomato, which is presently testing the opt-in feature with users, emphasizes that just phone numbers are shared that no more information or transaction data. Aditya Mangla, CEO of the company, noted that customers must explicitly allow restaurants to contact them for promotional or service communication, in accordance with DPDP guidelines. The Competition Commission of India (CCI) continues to scrutinize food delivery aggregators’ data practices, assessing whether they constitute unfair competition or violate privacy rules. As authorities and lawmakers debate the issue, both restaurants and platforms face an ever-changing world in which customer data protection, digital consent, and corporate growth are all delicately balanced.
