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Restaurants Lose Customers After Decline in Zomato Gold Due to Logout

Zomato Gold has been a game changer in terms of driving the dine-out habits of customers, a new report has claimed, saying there has been a 20 per cent decline in bill volumes

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Restaurants, Zomato, Zomato gold, decline, bills, orders
Zomato has announced to take its Gold programme where existing and new Zomato Gold members will be able to use Gold for home delivery orders. Pixabay

Zomato Gold has been a game changer in terms of driving the dine-out habits of customers, a new report has claimed, saying there has been a 20 per cent decline in bill volumes for partners after they logged out of Zomato Gold programme.

Gold partners have witnessed growth over 35 per cent growth in bill volumes after partnering with Zomato Gold and weekday growth has been marginally better than weekend growth, said the report from Bengaluru-based research firm RedSeer.

“Ninety per cent of Zomato Gold Members try out new restaurants just because of the programme. Dine-out frequency for Gold members has increased from 2.8 to 3.3 times/month after subscribing to Gold membership and is 50 per cent higher than that of non-Gold members,” the findings showed.

Zomato on Saturday announced to take its Gold programme to delivery platform, where existing and new Zomato Gold members will be able to use Gold for home delivery orders. The programme is currently available in 16 cities.

Zomato Gold was till date available only on eating out at fine-dine restaurants.

According to the new report, 95 per cent of Zomato Gold Members order more number of dishes/drinks because of Gold discounts.

“Pre-discount average bill value for Gold members is over 11 per cent higher than non-members,” the redseer report mentioned.

Sixty per cent of the Gold partners agree that there has been an increase in new customers coming in because of Zomato Gold.

Fifty-five per cent of the Gold partners have witnessed an increase in visit frequency of Gold customers, the report added.

Restaurants, Zomato, Zomato gold, decline, bills, orders
The National Restaurant Association of India (NRAI) on Saturday slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt. Pixabay

Students and young professionals with low-income tend to have lower bill value are also utilizing the Gold programme to its maximum.

“Onboarding members via sources like premium credit cards, video subscription platforms, HNI (high networth individuals) targeted platforms like Cred etc. will further enhance the presence of high-spending individuals on Gold platform,” the report added.

Meanwhile, the National Restaurant Association of India (NRAI) has slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt by the online food aggregator to shore up the sinking fortunes of its flagship Gold programme.

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NRAI also said that it continues to remain firm in its belief that Zomato Gold in its current form is an unacceptable proposition.

According to Zomato, the Gold programme drives 25-30 per cent business for its restaurant partners and more and more Gold users (90 per cent) are exploring new restaurants because of the programme.

Gold on delivery will offer the second-highest priced item on the order for free, except for combos, MRP items and special dishes. (IANS)

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Zomato Acquires UberEats in India in an all-stock Deal

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date

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Zomato NRAI
Zomato in a smartphone device. Pixabay

Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.

According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.

Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.

It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.

Zomato, Dining, Gold
Home-grown restaurant search and delivery platform Zomato on Friday introduced the “Infinity Dining” plan for its “Gold” subscribers that allows them to have unlimited buffet at partner restaurants. Pixabay

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.

“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.

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On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.

The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date. (IANS)