Following the closure of Pro and Pro Plus, Zomato is developing a new loyalty program
- ByStartupStory | November 12, 2022
Akshant Goyal, the company’s chief financial officer, said during the September-quarter earnings call on Friday that Zomato, a food-tech company, is working on a new “loyalty programme construct” for food delivery after recently discontinuing its membership programmes Pro and Pro Plus.
Notably, some Zomato users have discovered a new feature that allows users to purchase a bundle of six delivery with a 30-day validity period for a discounted price of Rs 95. (in comparison with Rs 270 for six deliveries).
On Thursday, the company released its July-September earnings, revealing a decrease in its net loss to Rs 250.9 crore from Rs 434.9 crore during the same period last year. Over the course of the three-month period, it saw a 62% increase in income year over year, reaching Rs 1,661.3 crore.
We had our own loyalty programme, which we abandoned, and we are aware of what the competition is doing in this area. It’s a professional call. In response to a question on membership programmes and their impact on order frequency, Goyal said that there are advantages and disadvantages to the many loyalty programmes available on the market today.
“We are currently working on something more distinctive to ensure that we profit from customers’ loyalty without suffering a significant financial loss. I, therefore, ask that you be patient, and I assure you that we will soon present a structure for our loyalty program”, he added.
Zomato’s main rival in the food delivery space, Swiggy, has its own reward programme called Swiggy One. Customers of Swiggy can take advantage of infinite free deliveries from restaurants within a certain radius, endless free deliveries from Swiggy’s Instamart quick-commerce vertical, and exemption from surge fees for deliveries under this provision. For Rs 399 for a three-month subscription or Rs 899 for a 12-month subscription, Swiggy One is priced.
Zomato discontinued its paid membership-based programmes Pro and Pro Plus in August. In the same month, Goyal revealed in the analyst call for April–June that the business intended to “look beyond these loyalty programmes and look at introducing newer use cases” to significantly increase customer frequency. The Pro and Pro Plus programmes on Zomato were used for both home cooking and eating out.
It was announced on Monday that Zomato had launched Zomato Pay, allowing users to receive discounts by paying for meals at participating restaurants through the Zomato app. The new service is currently available in 12 cities in India and the United Arab Emirates, and the company said it will be quickly scaled up.
Zomato’s food delivery business has seen growth in the average order value. The GOV for meals supply increased by 3% sequentially and 23% annually to Rs 6,631 crore during the third quarter of 2017. GOV is defined as the total dollar value of all orders, excluding ideas and taxes and customer supply costs.
, the company’s chief financial officer, said during the September-quarter earnings call on Friday that Zomato, a food-tech company, is working on a new “loyalty programme construct” for food delivery after recently discontinuing its membership programmes Pro and Pro Plus.
Notably, some Zomato users have discovered a new feature that allows users to purchase a bundle of six delivery with a 30-day validity period for a discounted price of Rs 95. (in comparison with Rs 270 for six deliveries).
On Thursday, the company released its July-September earnings, revealing a decrease in its net loss to Rs 250.9 crore from Rs 434.9 crore during the same period last year. Over the course of the three-month period, it saw a 62% increase in income year over year, reaching Rs 1,661.3 crore.
We had our own loyalty programme, which we abandoned, and we are aware of what the competition is doing in this area. It’s a professional call. In response to a question on membership programmes and their impact on order frequency, Goyal said that there are advantages and disadvantages to the many loyalty programmes available on the market today.
“We are currently working on something more distinctive to ensure that we profit from customers’ loyalty without suffering a significant financial loss. I, therefore, ask that you be patient, and I assure you that we will soon present a structure for our loyalty program”, he added.
Zomato’s main rival in the food delivery space, Swiggy, has its own reward programme called Swiggy One. Customers of Swiggy can take advantage of infinite free deliveries from restaurants within a certain radius, endless free deliveries from Swiggy’s Instamart quick-commerce vertical, and exemption from surge fees for deliveries under this provision. For Rs 399 for a three-month subscription or Rs 899 for a 12-month subscription, Swiggy One is priced.
Zomato discontinued its paid membership-based programmes Pro and Pro Plus in August. In the same month, Goyal revealed in the analyst call for April–June that the business intended to “look beyond these loyalty programmes and look at introducing newer use cases” to significantly increase customer frequency. The Pro and Pro Plus programmes on Zomato were used for both home cooking and eating out.
It was announced on Monday that Zomato had launched Zomato Pay, allowing users to receive discounts by paying for meals at participating restaurants through the Zomato app. The new service is currently available in 12 cities in India and the United Arab Emirates, and the company said it will be quickly scaled up.
Zomato’s food delivery business has seen growth in the average order value. The GOV for meals supply increased by 3% sequentially and 23% annually to Rs 6,631 crore during the third quarter of 2017. GOV is defined as the total dollar value of all orders, excluding ideas and taxes and customer supply costs.
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