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Can Zomato Continue its Deep Discounting Strategy? |
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INTRODUCTION |
| On August 15, 2019, over 300 restaurants under the National Restaurant Association of India (NRAI) launched a Logout campaign and delisted themselves from the platforms of some major Food Service Aggregators (FSAs) such as Zomato, EazyDiner, Nearbuy, Magicpin and Dineout over what they called unsustainable deep discounting practices. The campaign aimed to give the restaurant industry independence from aggregators that had allegedly distorted the food service sector through aggressive discounting and predatory pricing, thereby hurting the core value proposition and bottom line of restaurants. Among the FSAs, Zomato was one of the biggest food delivery startups in India, and it had come under severe scrutiny as its premium subscription-based dining out service Zomato Gold (ZG) had 6,500 restaurants as partner members and a total of 1.1 million subscribers in India as of August 2019. Around 2,500 restaurants logged out from the ZG service...
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