Food Delivery Gone Wrong by Zomato?


Food delivery platform Zomato’s loyalty programme Zomato Gold made a comeback last week, after 30 months of being shut down, The National Restaurants Association of India (NRAI), an industry body, has advised restaurants to step up their own loyalty programmes on discounts through other apps to counter the return of the subscription service.

In 2019, Zomato Gold was withdrawn after restaurants started a campaign– #LogOut – in protest against discounts offered under the programme, deeming it unsustainable for business.

ETtech tries to understand the conflict between the restaurant body and Zomato, and takes a look at the business of loyalty programmes.

ETtech reported on January 24 that Zomato has relaunched its Gold subscription programme, earlier replaced by Zomato Pro, which too was shut down last year.

We reported that in its latest avatar, Gold, which is being offered for Rs 149 for three months, will facilitate free deliveries at restaurants within 10 kilometres on orders above Rs 199.

Gold members will also receive discounts on food deliveries and dining out. Additionally, the terms for Zomato’s co-branded credit card with RBL Bank have also been amended. Initially, the Zomato Edition credit card holders were given a Zomato Pro membership co-terminus with the credit card, but the Pro membership has been cut short till February 23. Upon expiry of the Zomato Pro membership, the users will be given a three-month membership of Zomato Gold.