More trouble for Zomato as thousands of restaurants participate in logout campaign over deep discounts

In fresh trouble for food-delivery app Zomato, more than 1200 restaurants de-listed themselves from Zomato Gold dine-out programme over the deep discounts offered by Zomato.

According to reports, thousands of restaurants in major cities like Mumbai, Pune, Bengaluru, Delhi, Gurgaon, among others have opted out of Zomato Gold.

In a series of tweets, Zomato founder Deepinder Goyal said it is open to making modifications to rectify “mistakes.”

“We are committed to work with the industry and make modifications to Zomato Gold which will result in a win win situation for restaurants and consumers. Just like last year, when we changed some rules around Gold after hearing about the concerns of the restaurant community.”

Goyal also appealed to restaurant owners to stop the logout campaign.

“In the interest of consumers, we request restaurant owners, to stop the logout campaign, and have a collaborative discussion with internet aggregators for finding a sustainable way forward,” he said.

He also said Zomato Gold had been a major hit: “Our thoughts on the restaurant industry’s stand against deep discounting – 1 – Zomato Gold has been a major hit, but we understand that bargain hunters have also joined Zomato Gold and they are hurting some segments of the restaurant industry very badly.”

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“I am sad that young entrepreneurs (much like me) in the restaurant industry are feeling the pressure to such an extent that they had to launch such a campaign. We set out to create a company which can create a massive impact on consumers, as well as business owners,” Goyal tweeted.

In another tweet, he said, “What’s good for restaurants is good for Zomato. What’s good for consumers is good for Zomato. Finding the right balance and product market fit is the restaurant industry’s problem (and that includes us).”

What is Zomato Gold?

Zomato Gold is an exclusive dine-out and social drinking membership program that includes certain perks like a complimentary dish or up to 2 complimentary drinks depending on the restaurant. The benefits under the Zomato Gold programme are limited to select partner restaurants.

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