Zomato Back in Trouble: 8000-Strong Hotels Body to Boycott Zomato Gold Delivery Scheme Over Steep Discounts, Illegally Run Kitchens & Other Allegations
More than 1,200 restaurants in several major Indian cities de-listed themselves from the dine-in programmes of services like Zomato over the "unsustainable" deep discounts offered by the aggregators, saying the table reservation services were hurting their business model in August.
New Delhi, November 25: Trouble doesn't seem to end for Zomato as the online food aggregator is now facing the heat on delivery. The Indian Hotel and Restaurant Association (AHAR), which has more than 8,000 members nationally have unanimously boycotted delivery services by Zomato under its Zomato Gold programme with immediate effect over various allegations.
According to an Economic Times report, these allegations include illegally-run kitchens, steep discounts offered for Zomato Gold members and unavailability of delivery executives. The hotels had informed Zomato earlier and asked them to scrap the service scheme, but according to Association President, 'There has been no action by the food aggregator on the same.” Zomato Gold Programme Modified, But Restaurant Owners Continue #LogOut Campaign as They Remain Unimpressed.
Zomato Gold was extended to delivery by the company in September this year. Under this programme, members can get one free dish each time they place an order. There has been a deadlock between the restaurants and Zomato over their 'Gold programme' on the grounds that it is hurting their profitability deeply. NRAI Slams Zomato For Extending 'Gold' Programme to Delivery.
In August, more than 1,200 restaurants in several major Indian cities de-listed themselves from the dine-in programmes of services like Zomato over the "unsustainable" deep discounts offered by the aggregators, saying the table reservation services were hurting their business model.
Following which, Zomato claimed that they made some modifications to rectify "mistakes" and appealed to restaurant owners to stop the #LogOut campaign. However, the restaurants refused to budge from their stance and were clear that the deep discounts offered by Zomato have been hurting their profit margins and asked them to scrap several points under their popular Gold programme.
(The above story first appeared on LatestLY on Nov 25, 2019 10:12 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).