Zomato extends Gold program to not just eating out but also deliveries; NRAI terms it desperate attempt

Zomato, the online food delivery and listing platform now extended its Gold program to not just eating out but also to deliveries.

Existing members of Zomato Gold will have access to food delivery privileges for no additional charges along with some FUP (Fair Usage Policy) revisions in their existing membership. They will be limited to two "unlocks" per day (one dining-out and one delivery), said a report in Moneycontrol.

Membership will also be limited to a single device per person. If any existing members are unsatisfied with the revisions, Zomato will offer refunds on a pro-rata basis, the report said.

Zomato Gold on delivery will offer the second-highest priced item on the order free, except for combos, MRP items and special dishes. It will only apply on minimum order values of Rs 300 with discounts capped to Rs 300 per order. New users will pay Rs 1,800 for an annual package that will give them access to dining out and delivery privileges.

Representational image. News18

Reacting to Zomato's latest move, Anurag Katriar, President,  National Restaurants Association of India (NRAI) said the launch of Zomato Gold on delivery is a desperate attempt by Zomato to shore up the sinking fortunes of flagship Zomato Gold programme. It is also another instance of Zomato changing the goalpost—Gold was originally launched as a tool to promote the culture of "Dining out" but now it is being extended on deliveries too! Essentially, it is now a program that merely promotes deep discounts on both dine-in and delivery verticals, the cost of which is borne solely by the restaurant partners.

Katriar said, NRAI continues to remain firm in its belief that Zomato Gold in it's current form is an unacceptable proposition. "We expressed the same unequivocally to the Zomato team in our recent talks. However, in utter disregard to the viability of restaurant fraternity, they have chosen to extend the programme further to the delivery vertical as well. This will be calamitous to the business in the delivery segment and we appeal to all restaurants and cloud kitchens entrepreneurs to stay away from Zomato Gold on delivery. Offer right quality at the right price, rather than falling for such discount gimmicks," he said.

Zomato revised the terms of use of Zomato Gold on dine in, however, it chose to ignore the core issue of deep discounts, NRAI said. They instead chose to curtail the usage by the customer, which is very much against the original thesis of promoting eating out of home. This is yet another example of unilateral change of goalpost by Zomato. Zomato collects money from both; the Gold subscribers and restaurant partners; and yet keeps making unilateral changes on terms of engagement for both, Katriar said.

NRAI is clear that #ZoGoIsNoGo and we continue to #StayLoggedOut, it added.

Zomato Gold was the bone of contention with restaurants and online food aggregator  Zomato. After two days of talks with National Restaurant Association of India (NRAI), the online food aggregator failed to reach a consensus.

Zomato Gold is a premium membership plan that offers free food and drink.

During the recent #Logout campaign, restaurants complained about the deep discounting offered through Zomato Gold which was disrupting the industry.

After talks with the NRAI, Zomato  said it was modifying the Gold programme.