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Zomato restaurant spat isn't food delivery apps' biggest problem

Last-mile operators have yet to show a path to long-term profit growth

A Zomato driver prepares to pick up an order from a Mumbai restaurant.   © Reuters

TOKYO -- Less than a year on from its initial public offering, Indian food delivery service Zomato finds itself caught between restaurants and customers over ensuring quality. But the company and its peers face a bigger problem that will outlast this controversy.

Zomato recently unveiled a policy to ban restaurants that receive serious complaints about their orders. Violations run the gamut from incorrect items to rotten or moldy foods to dishes that contain broken glass or insects.

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