What is Zomato’s new plan for sharing customer data with restaurants?

In a controversial move, Food delivery giant Zomato is reportedly preparing to share customer data, including phone numbers, with food outlets.

The development ends a long-standing dispute between Zomato and the restaurant industry, but it has sparked concerns over privacy and potential misuse of personal information.

According to India Today, Zomato is in advanced talks with the National Restaurants Association of India (NRAI), representing over 5 lakh restaurants, to implement the plan. 

How will it affect customers?

Currently, food delivery platforms mask customer contact details, preventing restaurants from reaching users directly. As part of a pilot, Zomato is now showing pop-ups asking customers for permission to share their phone numbers for marketing and promotions. Once granted, consent cannot be withdrawn. The pop-up reads: “I allow restaurants to reach out to me for promotional activities.”

Previously, customers could contact restaurants via the app for order modifications, but platforms only shared aggregate data, such as order density in a specific area, without revealing individual identities.

Zomato faces criticism

The move has triggered backlash from lawmakers concerned about data privacy. Rajya Sabha MP Milind Deora said, "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."

Priyanka Chaturvedi, MP, also weighed in on X, saying, "While Zomato may think this is a push for transparency, for a customer this is a breach of data privacy. If Zomato and apps unilaterally take such positions, as a Member of standing committee on IT&Comms I would request to look at breach of data privacy laws."