Zomato to Share Customer Phone Numbers with Restaurants: Major Policy Shift Could End Long-Running Dispute
In a significant development for India’s food delivery sector, Zomato is finalizing an agreement with the National Restaurant Association of India (NRAI) to share customer phone numbers with partnered restaurants. The move could finally resolve a dispute that has lasted nearly a decade.
NRAI president Sagar Daryani confirmed that similar discussions have also begun with Zomato’s main competitor, Swiggy. If successful, both platforms may soon allow restaurants direct access to customer contact details for targeted marketing.
What’s Changing for Customers?
Zomato has already started rolling out a new consent feature in its app. Users are now being asked whether they agree to share their phone numbers with restaurants “to directly receive marketing and promotional updates.”
This opt-in approach aims to balance restaurant demands with user privacy concerns. Past attempts to share data reportedly led to negative customer feedback, forcing platforms to mask details such as names and phone numbers.
Why Restaurants Have Been Pushing for Data Access
Restaurant owners argue that understanding customer behavior is essential for efficient operations and marketing. Key insights they seek include:
- Average order value (ticket size)
- Preferred cuisines and menu items
- Peak ordering times and location-based trends
- Frequency of orders from repeat customers
According to NRAI, access to this information helps restaurants optimize menus, run targeted promotions, and reduce reliance on costly platform-driven discounts.
“We don’t want to spam customers. We simply want to make smarter marketing decisions and build direct relationships,” an NRAI representative explained.
Competition Heats Up with New Entrants
The timing of these discussions coincides with the entry of Rapido’s new food delivery service, Ownly. Unlike established players, Ownly has already signed an agreement with NRAI to share customer data from day one – giving it a potential edge with restaurant partners.
Regulatory Backdrop and Ongoing Concerns
The issue of “data masking” has been a central point in complaints filed by NRAI with the Competition Commission of India (CCI). The association has accused major platforms of anti-competitive practices, including high commissions (now often around 30-35%) and withholding valuable consumer insights.
While the CCI case remains pending, the voluntary shift by Zomato signals a possible de-escalation of tensions.
India’s Booming Food Delivery Market
Recent data highlights the massive scale of the sector:
- India’s total food services market: $70 billion in FY25
- Online food delivery segment: $10 billion (14% of total)
- Zomato’s active restaurant partners (Q2 FY26): 327,000
- Swiggy’s active restaurant partners: 264,000
Analysts believe future growth will depend less on acquiring new users and more on increasing order frequency, introducing innovative categories, and improving affordability.
What This Means for Investors and Consumers
For Zomato and Swiggy shareholders, smoother relations with restaurant partners could reduce regulatory risks and commission-related conflicts. Better restaurant satisfaction may also drive higher listings and order volumes over time.
For consumers, the change introduces a choice: opt-in for potentially more personalized offers directly from favorite restaurants, or opt-out and keep interactions limited to the app.
The coming weeks will reveal whether Swiggy follows Zomato’s lead and how enthusiastically customers respond to the new consent prompts.
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