Proposals throw a spanner in the works Tata GroupKa Super App, an all-in-one mobile application, is being tested on key stakeholders including employees.
Adani Enterprises is also preparing to launch a super app. A Super app can bring all of a group’s products and services on a single platform – allowing users to access grocery and medicine delivery, book flights and hotel rooms, and investment tools from a single location.
The Companies Act defines a related party as any body corporate that is a holding, subsidiary or associate of such body and has a common series of shareholders and directors. Under the proposed rules, Tata group entities such as Titan, Trent, Tata Motors And Taj cannot be part of its super app. Same for the Adani group companies.
Bye formally conveyed the concerns to the consumer ministry, while Reliance has informed that it supports the draft rules. Last week, Consumer Affairs Minister Piyush Goyal criticized Tata for objecting to the draft rules and ignoring the national interest involved in protecting brick-and-mortar businesses.
The draft rules also affect the relationship between app operators and related parties. Tata group entities will not be able to sell products like Tata Salt and Tata Sampann on its own e-commerce sites like BigBasket. Similarly, Reliance will also not be able to host Hamleys on JioMart.
Legal experts suggested that groups could modify the structures by creating two super/normal apps – they could sell their inventory on one and third party products on the other.
The draft rules also prohibit super/normal apps from having vendors sharing the brand name. This means that Tata and Adani will not be able to launch the namesake super app. Historically, business houses have grown and built a large customer ecosystem by foraying into diverse segments leveraging their flagship brand.
.