Zomato Gold to Come to Delivery as Restaurants Log Out of Dine-In

Restaurants have logged out of the Zomato Gold membership as the heavy discounts are squeezing their margins.

Zomato Gold will expand to delivery soon.

(Photo: The Quint)

Zomato, embattled in a fight with restaurants over its Gold membership, will soon expand the subscription service to delivery as well, the company said in a statement.

"There has been a long standing demand from our users to bring Gold to delivery, since delivery constitutes a large part of their engagement with us," the company said.

“We have been working on this and will be launching a program soon across multiple cities. We have utilised the recent time to secure valuable feedback from our restaurant partners to ensure the program we launch is sustainable and aids the growth of the industry.”

Zomato Statement

The company has not yet confirmed if the existing Gold members will also be a part of the plan or if it will launch a new subscription service specifically for delivery.

Many restaurants have logged out of the Zomato Gold membership as they said that the heavy discounts are squeezing their margins.

A report from LiveMint said that the company has been in touch with restaurants on its platform to sign up to Gold on delivery, which will offer discounts like 1+1 on food orders. The maximum discount has been capped at Rs 300, the LiveMint report said.

The report further said that the company will charge a one-time-fee from the restaurants, which will be lower than what it charges for the dine-in membership.

(With inputs from LiveMint)