Food tech giants, Zomato have stopped accepting new Zomato Pro members and Zomato Pro renewals as it adjusts its loyalty programs. The company had already discontinued the more expensive Zomato Pro Plus version and changed the conditions of its RBL Bank co-branded credit card.
“Thank you for participating in the Zomato Pro program,” Zomato writes in an email to subscribers attempting to renew their expiring Pro memberships. “The membership cannot be renewed while we develop a new and improved experience for you. To keep up with the newest offerings, please visit the Zomato app” added further on the email.
The Indian competitor of Zomato, Swiggy, offers a similar reward program by the name of Swiggy One. It began operations in November 2021. In addition to the typical food delivery, the service offers door-to-door delivery from Instamart.
Zomato hasn’t explicitly stated why the Zomato Pro membership is being discontinued. The company hasn’t yet provided many details regarding the new membership, though.
What does it mean for the company?
Akshant Goyal, the chief financial officer of Zomato, was quoted by IE as saying, “I think if you have to go from where we are today and really enhance consumer frequency, we will have to look beyond these reward programs and look at adding innovative use cases, which may lead to a lot of the present offline expenditure on restaurant food shifting on to our platform.”
In order to focus on developing a new experience with customers and restaurant partners, Deepinder Goyal’s online meal delivery service Zomato has halted accepting new registrations for Pro, its loyalty dining membership club, and has also stopped renewing existing subscriptions.
In contrast to the previous quarter’s loss of Rs 359.7 crore, Zomato recorded a consolidated loss of Rs 185.7 crore for the three months ending June 30.
In comparison to the same quarter last year, the consolidated revenue increased by 67%, to Rs 1,413.9 crore, and by 16.68% from Rs 1,211.8 crore in the previous reported quarter.
Can we expect more changes from Zomato in the coming days?
The moves come as a surprise especially when fine-dining restaurants reopen around the country following a period of turmoil during the pandemic, and many increasingly enjoy going out to supper with their families.
When an active membership tenure expires, they will no longer be able to extend or renew their memberships, even though they can still receive the benefits that were promised while they were active members.
According to Zomato, it will “very soon come up with a bigger, better experience.”
As per Inc42 reports, the online food aggregator is planning Zomato Intercity Legends which is the company’s experimental intercity delivery service. Users can order meals from several cities and have them delivered through land or air in less than 24 hours. In addition, Zomato’s recent acquisition Blinkit is testing 11-minute printed delivery, which has the listed meal delivery company scratching its head even more.
Zomato Pro and Zomato Pro Plus were introduced in 2020 and 2021, respectively. The Zomato Gold subscription was replaced by Zomato Pro
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