Restaurants delisting a wake up call for Zomato, says CEO; urges restaurants to stop logout campaign

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Published: August 18, 2019 2:40:35 PM

Following the logout campaign earlier this week, Zomato has lost 65 restaurants -- 1 per cent of the restaurant partner base of its membership-based dining out service Gold.

Zomato, which competes with Swiggy, Uber Eats, has urged the restaurants for “collaborative discussion” with food platforms to stop delisting.

Just days after over 1,200 restaurants in multiple cities reportedly delisted themselves from dining out services of the several online food platforms such as Zomato, MagicPin, EazyDiner, Nearbuy etc., under a #logout campaign due to the heavy discounts offered by such restaurant aggregator and food ordering platforms, foodtech unicorn Zomato, which competes with Swiggy, Uber Eats, has urged the restaurants for “collaborative discussion” with food platforms to stop delisting.

“In the interest of consumers, we request restaurant owners, to stop the logout campaign, and have a collaborative discussion with internet aggregators for finding a sustainable way forward,” Zomato’s founder and CEO Deepinder Goyal said in a series of tweets on Saturday. “Somewhere, we have made mistakes and things haven’t gone as planned. This is a wake-up call that we need to do 100x more for our restaurant partners than we have done before,” Goyal said.

Following the logout campaign earlier this week, Zomato has lost 65 restaurants — 1 per cent of the restaurant partner base of its Gold service, PTI reported, that offers 1+1 on food and 2+2 on drinks as part of its trial and annual pack worth Rs 299 and Rs 1,199 annually respectively. Zomato Gold is a membership or subscription-based dining out service, which has “grown almost 100 per cent in the past eight months and has over 1.25 million subscribers across nine countries including India,” the company had said last month in a statement.

The logout campaign has been observed by the industry association — National Restaurant Association of India even as “bargain hunters” are hurting some restaurants. “Zomato Gold has been a major hit, but we understand that bargain hunters have also joined Zomato Gold and they are hurting some segments of the restaurant industry very badly,” Goyal said while agreeing to modify Zomato Gold for a “win-win situation for restaurants and consumers.

“We are committed to working with the industry and make modifications to Zomato Gold which will result in a win-win situation for restaurants and consumers. Just like last year, when we changed some rules around Gold after hearing about the concerns of the restaurant community,” he said. Goyal, in fact, also asked the restaurants to look for ways to cut operating costs.

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