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Zomato tweaks Gold loyalty programme

Economic Times

Economic Times · 1y ago

Zomato tweaks Gold loyalty programme

Food delivery platform Zomato has made changes to its loyalty program, Gold. Starting from November 25, 2023, the "on-time guarantee" benefit will no longer be included for new memberships or renewals. Existing Gold members will continue to enjoy the benefit until their renewal. Zomato's rival, Swiggy, also offers a subscription service called Swiggy One, which provides discounts and free delivery. The Gold membership has been an important driver of Zomato's sales, but the company is making adjustments to improve profitability.

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Zomato hikes platform fee for users to Rs 5; pauses intercity deliveries

Economic Times

Economic Times · 1y ago

Zomato hikes platform fee for users to Rs 5; pauses intercity deliveries

Food delivery platform Zomato has increased its platform fee for customers by 25% to Rs 5 per order, effective April 20. The fee increase, applicable in key markets including Delhi, Bengaluru, Mumbai, and Hyderabad, is expected to boost the company's earnings. Zomato's rival, Swiggy, already charges Rs 5 as a platform fee on food delivery orders. Zomato's platform fee is in addition to the delivery charge, but it is waived for Zomato Gold loyalty programme members. The fee was initially introduced in August 2023 at Rs 2 per order and was increased to Rs 4 earlier this year. The intercity delivery service, Legends, has been temporarily suspended by Zomato due to low consumer traction and legal issues.

Zomato Gold Members Surge to 38 Lakh

Inc42 · 1y ago

Zomato Gold Members Surge to 38 Lakh

Zomato Gold, the customer loyalty program of foodtech giant Zomato, has gained 3.8 million members since its launch in January. The company revealed that Gold members now contribute around 40% of the gross order value of its food delivery vertical, amounting to INR 3,192 crore ($430 million) during the quarter ended September 2023. However, Zomato noted that Gold orders are less profitable due to program benefits, such as free deliveries. Despite this, Zomato reported its second profitable quarter, posting a profit after tax of INR 36 crore ($4.8 million).

Despite numbers, Zomato must tweak Gold to cut profitability drag, say experts

Economic Times

Economic Times · 1y ago

Despite numbers, Zomato must tweak Gold to cut profitability drag, say experts

Analysts and experts suggest that Zomato's loyalty program, Gold, needs adjustments to avoid negatively impacting the company's profitability. While Gold contributes to a significant portion of Zomato's food delivery gross order value, the program's benefits result in lower profitability compared to non-Gold orders. Zomato's CFO acknowledges the need for improvement, aiming to increase margins from Gold customers without hindering growth. The discount-led strategy used to drive Gold adoption led to higher-than-expected membership numbers. Going forward, Zomato plans to slow down the pace of Gold membership growth and reduce the margin gap between Gold and non-Gold orders.

Zomato pilots priority deliveries, tests ‘pay later’ feature

Economic Times

Economic Times · 1y ago

Zomato pilots priority deliveries, tests ‘pay later’ feature

Food delivery platform Zomato is testing priority deliveries, allowing users to pay an extra fee to get their orders delivered faster. The additional charge is applicable to members of Zomato Gold, the company's loyalty program. In addition, Zomato is piloting a 'pay later' feature where users can place orders and make the payment before the food is delivered. This move comes shortly after Zomato increased its platform fee by 25%. The company recently reported its third consecutive quarterly profit of INR 138 crore for the October-December 2023 period.

Food and grocery delivery companies cash in on subscriber base

Economic Times

Economic Times · 8m ago

Food and grocery delivery companies cash in on subscriber base

Zomato and Swiggy are leveraging their growing subscriber bases, driven by loyalty programs, to monetize their platforms. Zomato Gold and Swiggy One contribute significantly to order volumes, with millions of subscribers engaged. While driving sales growth, these programs impact margins due to discounts and free deliveries. To counteract, they're collaborating with brands for ad revenues and offering personalized benefits. Despite quick commerce growth, food delivery remains key for profitability amidst competition and cash burn challenges.

Uber rolls out 'Uber One' loyalty programme in India

Economic Times

Economic Times · 9m ago

Uber rolls out 'Uber One' loyalty programme in India

Uber has launched its loyalty program, Uber One, in India, offering monthly and annual subscription plans. The service is introduced amid increasing competition from platforms like Rapido and Namma Yatri. The subscription is priced at ₹149 per month and ₹1,499 annually, with discounts of up to 50% available for certain users. Subscribers will receive credits for future rides, priority support, and a complimentary three-month subscription to Zomato Gold. Uber had 25 million Uber One members globally as of September 30. Rapido, Uber's competitor, raised $200 million in funding earlier this year.

Zomato Rolls Out Loyalty Programme For Restaurant Partners

Inc42 · 1y ago

Zomato Rolls Out Loyalty Programme For Restaurant Partners

Zomato is launching Brand Packs, its first loyalty program for select restaurants. The program aims to cater to customers who frequently order from their favorite eateries. Zomato has already partnered with over 4,000 restaurants for this initiative.

India’s food delivery segment seen growing 10% sequentially in July-September period: UBS

Economic Times

Economic Times · 1y ago

India’s food delivery segment seen growing 10% sequentially in July-September period: UBS

According to a report by UBS Securities, India's food delivery market is expected to have grown by 10% sequentially during the July-September period. This is good news for Zomato and Swiggy, the dominant players in the segment. UBS estimated month-on-month volume growth for Zomato and Swiggy in July and August, with Zomato expected to achieve 10% quarter-on-quarter growth in July-September. The report also highlighted Zomato's market share loss to Swiggy in the past six months due to the suspension of its loyalty program and focus on profitability. However, Zomato has regained market share since the relaunch of its loyalty program.

Swiggy enables Rs 450 crore in disbursals through restaurant financing programme

Economic Times

Economic Times · 1y ago

Swiggy enables Rs 450 crore in disbursals through restaurant financing programme

Online food delivery platform Swiggy has disbursed over Rs 450 crore to more than 8,000 restaurants since 2017 through its financing programme. The programme allows restaurants to access financial products such as term loans and credit lines from lending firms. Swiggy is in a fierce competition with rival Zomato for market share in the food delivery industry and is also eyeing a public listing.

Zomato Introduces AI-Powered Assistant To Help Customers Place Orders

Inc42 · 1y ago

Zomato Introduces AI-Powered Assistant To Help Customers Place Orders

Zomato has launched Zomato AI, a chatbot or assistant to help customers find food dishes and restaurants. Initially, it's available exclusively for Zomato Gold users. Zomato AI allows for multiple messages and near-real-time responses. It suggests dishes, restaurants, and caters to dietary preferences. The move follows the trend of Indian startups incorporating AI, with competitors like Swiggy and ixigo doing the same. Zomato has been introducing new features and reported its first profitable quarter in April-June, with a consolidated profit after tax of INR 2 Cr.

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