Zomato CEO Deepinder Goyal logs out of talks with restaurants

While Zomato boss Goyal says he’s done talking, restaurants too have vowed to stay logged out.

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Goyal had tweeted that Zomato would not amend these membership programmes anymore.
BENGALURU: Deepinder Goyal, CEO, Zomato, said in a series of tweets on Thursday that the Gurgaon-based restaurant-discovery and food-delivery platform would not continue to negotiate with its partner restaurants on the company’s discount programmes — Infinity and Gold. The associations that represent the restaurants responded that they will remain logged out of the Zomato programmes.

“We continue to stay logged out. We have written to all the aggregators with our expectations and as of now we haven’t heard from them. If there’s is no resolution, we may opt for a nationwide protest,” said Pradeep Shetty, joint secretary, FHRAI. National Restaurant Association of India (NRAI) president Rahul Singh too said his members will stay logged out.

Goyal tweeted that Zomato would not amend these membership programmes anymore. Zomato Gold is a product which offers complimentary food and drink on dine-in orders depending on the restaurant. The Zomato founder directed his ire at National Restaurant Association of India (NRAI) president Rahul Singh, who is the CEO of restaurant chain Beer Cafe. He also tweeted pictures of promotional offers in Beer Cafe, which offered a ?999 membership programme, in which customers would get a 1+1 on food or beverages but once per customer per day.


“On a democratised platform like Zomato, large restaurants have to compete with independent restaurants on a hyperlocal basis, and are not able to leverage their large presence to pull more distribution/profits,” said Goyal in his tweet.

He claimed that large restaurants were using the logout campaign to “sabotage aggregators and benefit themselves”. Later, Goyal retweeted messages of support and screenshots of those who had gotten Beer Cafe promotional offers.

Singh said that Goyal was conflating two divergent subjects to muddy the waters. “I have been running this programme since 2014 and I choose who I make a member of this programme, not a broker,” he said. He argued that the offers that go out to customers are like credit card points or airline membership programmes where customers get offers and rewards according to their spends. Singh says his membership programmes are not unlike them. And that his membership programmes are named Bronze, Silver, Gold and Platinum.
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