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Zomato Introduces Zomato Pay For Dining Out

Customers will be able to use Zomato Pay to make payments at partner restaurants while also receiving discounts and cashbacks. The new programme also includes a 'Vibe Check' feature, which allows restaurants to post short videos — similar to Instagram Stories — to improve the discovery of their locations

Zomato Pay, the third iteration of its dining out programme, has been launched in several cities, including Delhi, Mumbai, Bengaluru, Ahmedabad, and Kolkata. The company announced in August that it was recalibrating its loyalty programmes, and that it had closed new signups and renewals for its flagship programme Zomato Pro, as well as revising the terms of its co-branded credit card with RBL Bank. 

Customers will be able to use Zomato Pay to make payments at partner restaurants while also receiving discounts and cashbacks. The new programme also includes a 'Vibe Check' feature, which allows restaurants to post short videos — similar to Instagram Stories — to improve the discovery of their locations.

Notably, the Zomato Pay launch comes at a time when restaurant discovery platforms Zomato and Swiggy have been chastised by restaurant operators for offering steep discounts. Recently, hundreds of restaurant outlets were removed from Swiggy's dining out platform after the National Restaurant Association of India (NRAI) informed its members that discount programmes like Zomato Pay and Swiggy Diner were detrimental to restaurant owners' interests. 

Zomato had piloted the Zomato Pay programme in Hyderabad and began pitching it to restaurant owners in July, just weeks before shutting down Zomato Pro.

Zomato Pro was released in 2020, followed by Zomato Pro Plus in 2021. Customers could get discounts when ordering food online or dining at partner restaurants. The programme replaced Zomato's Gold membership offering, which had undergone several revisions after receiving harsh criticism from restaurant owners for providing customers with offers such as 1+1. 

Swiggy, Zomato's competitor, also has a loyalty programme called Swiggy One, through which it offers a single membership for a variety of services such as food delivery, quick-commerce, and local door-to-door package delivery. Swiggy One was launched in November of last year.

Swiggy also acquired dining out platform Dineout from Times Internet in a $120 million all-stock deal in May. Bennett, Coleman and Company Ltd (Times Group), which publishes ET, has a digital media arm called Times Internet. 

Zomato reported a consolidated net loss of Rs 186 crore for the June quarter, compared to Rs 359.70 crore in the April-March 2022 quarter and Rs 360.70 crore in the June 30, 2021 quarter. Despite a smaller loss, Zomato's revenue increased to Rs 1,413.90 crore in April-June this year, up from Rs 844.40 crore in the same period last year.


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