More than 1,200 restaurants in several major Indian cities denouncing themselves from the dine-in programmes of services like Zomato, EazyDiner and others.
The restaurants in major cites like Mumbai, Delhi, Bengaluru, Kolkata, Goa, Pune and Vadodra exited platforms including Zomato, EazyDiner, Nearbuy, MagicPin and Gourmet Passport under a #Logout campaign,as per ET reports.
Restuarants claiming that the deep discounting offered by the aggregators and table reservation services was hurting their business. On the other hand, Zomato said the exits could be “anti-competitive and illegal”.
NRAI has come together to detox consumers from discount addiction.— NRAI (@NRAI_India) August 14, 2019
The move is being undertaken to protest against aggregators who have distorted a vibrant marketplace by aggressive discounting and predatory pricing.
Restaurateurs, it’s time to #Logout.#CozWeDeserve pic.twitter.com/bI8XUQ4MtX
Meanwhile, Zomato in a blog post addressed to restaurants, questioned the #Logout campaign. “We have noticed, among others, active discussions on price-fixing and limiting the supply of services, which could constitute cartelisation. We urge you to be careful and not get involved in any such discussions,” Zomato said.
“The #Logout movement started in Gurgaon two days back has turned into a nationwide one, which just shows how restaurants across the entire spectrum have been suffering from the deep-discount epidemic,”said National Restaurant Association of India (NRAI) president Rahul Singh.
In emails sent to restaurant partners, Zomato has asked for 45 days’ notice if they planned to exit and pay a sign-up fee per restaurant if they wanted to join back.
As the logout campaign picks up pace, @Zomato asks restaurant partners to serve a notice of 45 days before opting out of the Gold programme. In a fight against deep discounting, hundreds of restaurants in major cities delisted themselves from aggregator apps #LogOut pic.twitter.com/vR4ind2y9o— ET NOW (@ETNOWlive) August 17, 2019
Table reservation firm Dineout cofounder and chief executive Ankit Mehrotra said, “Dineout is closely working with all its restaurant partners and NRAI to build not only a more viable consumer-facing platform where diners can discover the right restaurants and offers around them, but also to understand the restaurant’s technological needs and solve the same with the multiple B2B modules to optimise their revenues and costs better and improve their bottom line.”
A twitter user Vishakha reacted on the matter, she tweeted “Absolutely ridiculous move @NRAI_India. Food aggregators offer a great marketing platform to restaurants and introduce them to a set of consumers that they can’t reach on their own. These apps have loyal diners who will #Logout and never go to restaurants not present on the app!”.
Controversies not new for Zomato
Recently, Zomato’s delivery executives in West Bengal protested against allegedly being forced to deliver beef and pork recipes, it took a religious turn.
West Bengal: Zomato food delivery executives in Howrah are on an indefinite strike protesting against delivering beef and pork, say, "The company is not listening to our demands & forcing us to deliver beef & pork against our will. We have been on strike for a week now." pic.twitter.com/tPVLIQc2SZ— ANI (@ANI) August 11, 2019
Before that incidence, there was another major controversy around religion of the delivery boy. A Hindu customer refused to take delivery from a Muslim Zomato delivery executive during ‘Shravan’ month, Zomato took to twitter to give a befitting reply to the customer.
Zomato India tweeted, ” Food doesn’t have a religion. It is a religion”.
Food doesn’t have a religion. It is a religion. https://t.co/H8P5FlAw6y— Zomato India (@ZomatoIN) July 31, 2019
By: Abhinav Ranjan, Editorial Desk, DKODING Media