Zomato Pay, the 3rd version of Indian multinational restaurant aggregator and food delivery firm, Zomato’s dining out program, has been launched in several cities, such as Mumbai, Delhi, Bangalore, Kolkata, and Ahmedabad. The firm had announced in August that it would be readjusting its loyalty programs. It has since stopped accepting new members and renewals for Zomato Pro, its flagship program, and has changed its co-branded credit card terms with RBL Bank (NSE: RBLBANK).
Users will be capable of making use of discounts and cashbacks through Zomato Pay by paying at partnered restaurants using the Zomato application. The latest program also has a “Vibe Check” feature that enables restaurants to broadcast short films in a way similar to ‘Instagram Stories to promote their locations more effectively.
The launch of Zomato Pay is significant since it occurs when restaurant owners criticize restaurant aggregators like Zomato and Swiggy for offering steep discounts. Following a warning by India’s restaurant industry business association, the National Restaurant Association of India (NRAI), to its members that discount programs like Swiggy Diner and Zomato Pay were opposed to the interests of restaurant operators, 100s of restaurant outlets have lately disappeared from the dining out platform of Swiggy.
Before ending Zomato Pro, Zomato had tested the Zomato Pay program in the capital city of Telangana, Hyderabad, and had begun marketing it to restaurant operators in July. The high-premium Zomato Pro Plus debuted in the year 2021 after Zomato Pro in the year 2020. Users could take advantage of discounts when placing online meal orders or dining at affiliated restaurants. The program took the role of the Zomato Gold membership option, which had gone through some changes after receiving fierce pushback from restaurant operators for providing clients with deals like the 1+1 offer.
Akshant Goyal, who is the Chief Financial Officer (CFO) at Zomato, made a statement saying that he believes that to effectively grow customer frequency from where they are now, they will need to go beyond the reward programs and consider creating new use cases, that may cause a significant portion of the present offline restaurant food spending to migrate to their platform.