Under Dine-in programme 1200 Restaurants moved out of Zomato
By MYBRANDBOOK
Zomato is an Indian restaurant search and discovery service founded in 2008 by Deepinder Goyal and Pankaj Chaddah operates in 24 countries.In 2011, Zomato launched in Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata.
In September 2012, Zomato expanded overseas to the United Arab Emirates, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South Africa. In 2013, the company launched in New Zealand, Turkey, Brazil and Indonesia with its website and apps available in Turkish, Brazilian Portuguese, Indonesian and English. The acquisition of Seattle-based food portal Urbanspoon marked the firm's entry into the United States, Canada and Australia, and brought it into direct competition with Yelp, Zagat and OpenTable.
In February 2017, Zomato in a company's blog, explained the concept of cloud kitchen. With its cloud kitchen, the company will help the restaurants to expand their presence without incurring any fixed costs. In September 2017, Zomato claimed that the company had "turned profitable" in the 24 countries it currently operates in. Furthermore, Zomato announced that the "zero commission model" is to be introduced for partner restaurants.
Probably, the concept of Cloud Kitchen could bring disruption to the entire restaurants chain in the country, like OLAand UBER has brought revolution to the Taxi operators in the country.
Towards the end of 2017 Zomato stopped accepting updates from its active users, it appears this includes no longer utilising moderators to verify and make updates from users. Restaurant information is not being kept up to date, this includes not adding new restaurants nor removing closed locations. The B2B relation among restaurant companies and aggregators escalated on Friday, with more than 1,200 restaurants in several major Indian cities delisting themselves from the dine-in programmes of services like Zomato, which said the exits could be “anti-competitive and illegal”.
These restaurants in Mumbai, Delhi, Bengaluru, Kolkata, Goa, Pune and Vadodra exited platforms including Zomato, EazyDiner, Nearbuy, MagicPin and Gourmet Passport under a #Logout campaign, claiming that “unsustainable” deep discounting offered by the aggregators and table reservation services was hurting their business models. Meanwhile, Zomato in a blog post addressed to restaurants, questioned the #Logout campaign and some of the proposals being considered by industry groups. “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,” it says.
“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 Rahul Singh, President, National Restaurant Association of India (NRAI).
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.
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