Zomato, a Food delivery unicorn has launched Zomato Pro Plus, a new subscription product, which offers unlimited free deliveries. Zomato CEO Deepinder Goyal made the announcement in a tweet.
Deepinder Goyal said, “Zomato Pro Plus subscription is going to be same as Amazon’s Prime package which also offers unlimited free deliveries. In addition to that, all Zomato Edition Black credit card holders are going to be automatically upgraded to Zomato Pro Plus. The credit card is offered in partnership with Ratnakar Bank (RBL).”
Goyal also indicated that Pro Plus is going to be a limited roll-out for a specific number of users. The corporation’s customer helpline explained that Pro Plus is an ‘invite-only service for now, and is being presented to few new customers every day. Pro Plus has the price of INR 300 for a 3-month subscription, and at INR 900 for a one-year subscription. Current users can also upgrade to the new Pro Plus subscription at an adjusted price against the reaming tenure of the Pro subscription.
“Everybody else apart from Zomato Black card holders are going to have to buy the Pro Plus upgrade from the Zomato app. Fatafat le lena, baad mein shayad nahin milega.” Goyal said in his Tweet on August 2.
Goyal also explained that the corporation now has around 1.8 Mn Zomato Pro subscribers, up from around 1.4 Mn subscribers as of April 2021, when the company announced its FY2021 results.
Zomato Pro was originally launched as a discount product named Zomato Gold back in 2019, where the company offered free food or drinks for dine-in customers. This was later rebranded to Zomato Pro in June 2020 following backlash from restaurant owners, who said that the Gold subscription was exploitative and resulted in diners only seeking discounts.
So many restaurant partners started the infamous #Logout movement to protest against the heavily discounted business model of Zomato Gold. The restaurant partners had alleged that it was difficult to fulfil the operational cost of an order due to the unconditional freebies provided by Zomato.
Before the rebranding to Zomato Pro, the company also changed few choice policies related to the subscription, and limited Zomato Gold’s products to work with restaurant partners demand. But in a way, they went for a complete rebranding as ‘Pro’ which included online delivery benefits too.
The Pro subscription at first included faster deliveries, exclusive delivery offers and a money-back guarantee. During the launch of the Pro subscription in May 2020, Zomato had said that customers who may not be able to save twice the cost of a Pro subscription would be refunded the entire subscription fee by the end of 2020.
The announcement of a new subscription product comes shortly after the food delivery unicorn’s INR 9,000 Cr IPO that went live in July 2021. Just a week after Zomato’s debut in the public market on July 23, the company’s shares were trading at INR 139 at the time of publishing of this article, which is significantly higher than its opening price of INR 76 per share.
The food delivery major’s market capitalisation passed the INR 1 Lakh Cr mark on the first day of listing and currently, the market cap stands at INR 1,047.33 Bn. At issue price, Zomato’s market cap stood at around INR 65,000 Cr.