“Mostafa Seyyed Hosseini”, the CEO of Tapsi, in a live Instagram conversation with “Mani Ghasemi”, the founder of Digiato, addressed the issue of Snapp’s monopoly in food service and Tapsi’s complaint against this company in the competition council.
According to Ideaagency, Seyyed Hosseini explained that Snappfood’s exclusive contracts hindered Tapsifood’s growth: “If restaurants do not get rid of Snapp’s exclusive contracts, it may lead to the failure of our business. The limitation of creating in the supply layer of Marketplace questions the feasibility of the whole business.
According to Seyyed Hosseini, Snappfood’s contracts with restaurants are arranged in such a way that they are afraid to cooperate with Tapsifood:
He said: “We have not been able to sign contracts with good restaurants at all; Because Snapp doesn’t allow them. The restaurant says that if I work with Tapsifood, I have to pay $383,000 in compensation and return the difference of all marketing expenses to Snapp.
According to Seyyed Hosseini, as soon as the complaint was announced, Snapp took a more aggressive approach and threatened a significant number of restaurants and other services the next day. He said: “They have even contacted a Sangak bakery in Mashhad that either you stop working with Tapsifood by nightfall or you will be removed from Snappfood. Snappshop is one of Snapp’s small ventures, but they also call the stores in this sector to stop working with us.” »
Seyyed Hosseini believes that anti-competitive and monopolistic practices are in Snapp’s DNA and go back to “Rocket Internet”, Snapp’s shareholder.
He said: “Monopoly should be fixed in the mind of the customer, not by limiting the supply.” Of course, this is not a special procedure for food service; Exclusivity is in the DNA of this group. The exclusive contracts had been in place since 2019 when Chilivery sued. Even now, the nature of snapp contracts has not changed, only the form has changed. He signs a contract in such a way that they say it chose the restaurant itself.”
The CEO of Tapsi considered the continuation of this trend to the detriment of the entire market and consumers and said that if Tapsifood fails, the competition will be completely lost in the food service: “Tapsi with all its facilities including a good and well-known brand, a strong logistics infrastructure, a good platform, specialized knowledge and RESOURCES FOR INVESTMENT If he can’t do it, who can? “If things don’t change, people will forever have one choice for food, and that’s Snapp.”
Referring to Tapsi’s complaint against Snapp, Seyyed Hosseini expressed his hope that the decision of the Competition Council will be the end of the procedures that he believes are anti-competitive and have trapped restaurants.
Tapsi’s CEO continued: “If the competition council uses all its capacities, the chain tied to the feet of restaurants will be opened. If this chain is opened, we will go from a monopoly space to a competitive space, and in the long run this will benefit Snapp.
He added: “The Competition Council, having sufficient legal capacity, can cancel these exclusive contracts and announce the issue publicly so that all restaurants are informed.”
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