- This could be another setback for Zomato, which has been already being criticized by different restaurant partners over aggressive pricing, delivery partners as well as associations backing them.
- Recently in news due to controversies such as #Logout, Zomato face another backlash as hundreds of delivery partners started to protest against the company in Bengaluru.
Recently in news due to controversies such as #Logout, Zomato face another backlash as hundreds of delivery partners started to protest against the company in Bengaluru.
It surfaced after a tech journalist highlighted a thread where a crowd of Zomato delivery partners was seen raising slogans against the company.
A thread on the microblogging website claimed that more than 3,000 such partners have logged out from Zomato app in the past three days. Not only in Bengaluru but Mumbai had also the same condition and reaction where 2,000-3,000 delivery boys have reportedly said goodbye to the company.
This could be another setback for Zomato, which has been already being criticized by different restaurant partners over aggressive pricing, delivery partners as well as associations backing them.
The probable reasons behind this fallout include incentives, daily earnings, and cut in other perks which pushed the delivery partners to take this step.
Zomato believes that different parameters such as base pay, user satisfaction, minimum guarantee, delivery touchpoints help them appreciate our delivery partners in accordance with their efforts. Reduced average delivery time (less than 30 mins) and enhanced system efficiency have enabled the delivery partners to perform more deliveries in the same amount of time.
All the food tech companies who had spat with NRAI had multiple meetings with NRAI to sort out the issue. The company is unable to contain the protests despite pulling back the Infinity Dining program, restructuring its Gold subscription.
The last meeting held on September 13 with NRAI went into vain as both the parties couldn’t agree on terms and conditions applied on Zomato Gold either in dine-in or delivery segment.
More than 1,200 restaurants across India pulled out of Zomato app during the #Logout campaign led by NRAI as deep discounts, aggressive pricing and loyalty programs were hurting the business.
Recently, Zomato finally suspended the controversial Infinity Dining program from its app. The “all-you-can-eat” model of the Infinity Dining program was the biggest bone of contention between the Gurgaon-based Zomato and restaurants.
Infinity Dining was launched in three cities with 300 + restaurants just over two months ago. It permitted Zomato Gold subscribers for a restricted period of time to order unlimited food and drinks at a fixed cost from the partner restaurant menu. Restaurants said their profit margins were squeezed.
On the ongoing #Logout campaign, newly appointed NRAI president Anurag Katriar said that the association has successfully concluded talks with Nearbuy, Dineout, and Magicpin and they are back in Business. Only Zomato is still having issues with the association.
The ongoing controversies can prove to be huge dent for the brand image of one of the leading food-tech startups in India, we hope that Zomato comes up with a solution to tackle this problem.
