Mumbai, August 22: Restaurants have decided to stay off Zomato, despite the online food delivery app changing its 'Gold' Policy. The National Restaurants Association of India (NRAI) said in a statement that the restaurants would not come back until the “deep-discounting phenomenon” is off the table. Amazon Food Delivery App To Take on Zomato, Swiggy With Lucrative Commissions to Lure Restaurants.
According to an Economic Times Retail news report, the NRAI is believed to have rejected the proposal forwarded by Zomato and is said to be unimpressed that despite its opposition, the company went ahead and communicated its new terms to its partners.
The demands of the restaurant owners included- a restriction on the number of 'unlocks' available to a Zomato Gold member and a dilution in the ‘Buy 1 Get 1’ offer. However, none of these changes was incorporated in the new scheme proposed by Zomato. Gurgaon Restaurants Opt-Out of Dining Apps Like Zomato, EazyDiner to De-addict Customers of Discounts; Mumbai, Kolkata and Other Cities to Follow.
More than 1,200 restaurants in several major Indian cities have reportedly 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.
Amid escalating tension between restaurants and aggregators, Zomato on Saturday said that it is open to making modifications to rectify "mistakes" and appealed to restaurant owners to stop the #LogOut campaign. Restaurants have been facing a difficult situation due to high rentals and other reasons. To add to the woes, heavy discounts by the aggregators have also been eating into the profit margins of the eateries.
Taking advantage of the situation, Amazon is planning to make its entry into the online food delivery space by offering lucrative commissions to restaurant owners to lure them to their platform and break away exclusivity with players like Zomato and Swiggy.