Amazon, Zomato, Flipkart go cashless; opt for prepaid payment methods amid lockdown Prashasti Awasthi Mumbai | Updated on March 27, 2020 Published on March 27, 2020 SHARE While the latter seems difficult under the shadow of the #Logout campaign, Zomato has already reduced its employee’s pay from Rs.35 to Rs.25 per delivery this September. At a time when pretty lights and decor light up lanes serving Ramadan food in Mumbai, people are bound to want to go out to eat. The food aggregator does know that restaurants are logging out as their bottomline is getting whacked out of shape by Zomato Gold. In FY18, it reported losses worth Rs.3.97 billion on operating revenue of Rs.4.42 billion. But, losses multiplied too, 24x from $12 million to $294 million (See: Food for free). Restaurateurs may sulk and pout, but consulting firm RedSeer’s report had Goyal nearly thumping his chest in triumph. However, we’ve compiled a list of places that you need to try out this Ramadan for some tongue-tantalizing dishes. “Redseer’s report looks like it’s paid,” says Singh, harshly and backs it up with anecdotal evidence. Gaurav Gupta, co-founder and COO of Zomato, says it was spent on changing consumer behaviour and building the logistics network. The boy, identified as Satish, died on the spot. Chawla also noted that retailers will not be able to get the orders that they usually get because apps will control the whole process from ordering to last-mile deliveries. Time to try out something new It’s the last day of September. Not hard to imagine with people hunting in every cranny, nook and app for any “OFF” listing, particularly on weekends. NRAI is currently in talks with Dineout, EazyDiner, and Nearbuy, which also saw restaurants logging out apart from Zomato, but are likely to be back in dine-out business in a few days. It sounds pathetically naïve. A 20-year old Zomato delivery agent died in a road accident in Mumbai when an overspeeding Mercedes car hit his scooter. Now, this is significant. It did not come from bravery as much as desperation. All of these services will be folded into the main app. Even Swiggy is losing money. Zomato's Gupta says, “The pay was reduced because the operations have been more finely honed, therefore each executive can do more deliveries in a shorter span of time”. One reason could be that it desperately needs volume because it is burning cash. The Government of India has extended the coronavirus lockdown even further till April end. Zomato delivery boys will go on a strike from Monday protesting that the food being delivered by them is hurting their religious sentiments. But, Zomato has said that it has enabled them to carry out more deliveries in the same duration by lowering average delivery time. some restaurants have alleged in the food delivery space, How Meesho Centered Its Covid-19 Survival Strategy Around Its Entrepreneurs, BJP Leaders Call For Action Against Twitter After Trump Ban. “We fear these delivery apps will destroy our margins and we will lose control on our data,” said Sahu, who is also a member of the state’s liquor vendors association. Goyal had responded to this allegation in his tweet, which had screen shots of discount offers on Beer Cafe’s app and read, “I welcome the NRAI president, Rahul Singh embracing the Gold standard at his own restaurants. They don’t have my invoicing and neither do they have a link to my computers, so how will they know anything?”. Food delivery is bleeding Zomato and that is why it too is diversifying furiously. Renaissance Mumbai Convention Centre Hotel, Mumbai: "Will swiggy/zomato deliver food inside the hotel..." | Check out 8 answers, plus 2,764 reviews and 1,745 candid photos Ranked #55 of 858 hotels in Mumbai and rated 4.5 of 5 at Tripadvisor. Zomato, the restaurant finding App managed to be in the limelight the right way, when they launched their online delivering service last month with an outdoor advertising campaign. As online liquor orders start to become the new norm across states, retailers fear that internet companies like Zomato, Swiggy and others will disrupt margins, which is a big deal in the liquor retail business, given the high price of the sale licence. Our work is exclusively for discerning readers. People of Mumbai turned out to be most generous in giving tips as Zomato said that tips worth a total of Rs 4.6 crore were received by its Mumbai delivery partners. Many small retailers will also lose their bread and butter,” he added. And, chances are it will leave you impressed. Goyal added that this is a better situation as compared to FY18, when the last mile cost per delivery was Rs.85. The scheme initially was sold to restaurateurs as an initiative to promote premium dining for select customers. According to NRAI, till date, 3,000 restaurants have logged out of Zomato Gold out of the initial 6,500 restaurants. We asked the management if Zomato is running low on cash and trying to conserve it through all these measures. They have been agitating and hashtagging furiously, asking for food-service aggregators (FSAs) to stop deep discounting for diners, cut down on freebies, and reduce the fee restaurants have to pay to be listed. Retailers want to own this data as they believe that customers should be directly connected with sellers. That could mean so many things, maybe they shared discounting with a few restaurants or maybe they spent it on hoardings or on funny promo lines such as “Every day is fries day”. With Zomato Gold, you can ‘unlock’ an offer every day. He sees Access, Daily and POP (a cheaper, small portion meal from your neighbourhood restaurant) as growth engines. Last week, both Swiggy and Zomato announced that liquor delivery service in Jharkhand, followed by Odisha this week. “There will be no control. Is India's largest insurer as rock-solid as it is made out to be? There is no mention of an immediate need for fresh capital. Welcome to Gold, Rahul! Ahead Of Budget, Payment Apps, Banks Urge Government To Bring Back MDR. And this seems to be the crux of Zomato’s woes.”. RedSeer reported that 60% of Zomato Gold’s partners had seen an increase in new customers after joining it, and partners saw 35% growth in bill volume after the programme. These discounts can range anywhere between 30% and 70% on the apps. The whole message of oneness in diversity reeked of goodness and accommodation. The latter already has over 70 organisations on the rolls, and 1,000 food partners across seven cities including Mumbai, Delhi NCR, Bengaluru, Visakhapatnam, Chennai, Pune and Hyderabad. What went wrong at Rana Kapoor's Yes Bank. Perhaps that’s what is driving Zomato too. Tiplur is also said to be in talks with various state governments and has already filed an application with the Odisha government. Instead, he tweeted that #Logout really is about the small people vs the big people, more specifically “the small restaurant owner vs the large restaurant owner”. It started Zomato Kitchen for restaurant owners who are looking to expand their business into new geographies and dispatch food to customers through Zomato’s delivery services. An increase in the number of deliveries per rider per hour from 0.9 to 1.4 helped them in bringing down the last mile cost. In August, at the height of this stand-off, the aggregator announced Infinity Dining under their now infamous Gold Membership. 30,000-75,000, but for delivery enrolment they would be charged only Rs.10,000. In this case, smaller retailers will lose out … It is minimising its cost per delivery by cutting down the delivery executive’s pay and increasing the commission charged from restaurants. Delivery revenue increased a whopping 4x in FY19 to $155 million from FY18’s $38 million. The online food delivery service, Zomato in association with Feeding India is helping ensure the daily wagers don’t sleep hungry during this period of lockdowns. 2,000 annually. Explore the tempting range of culinary delights, from aromatic North Indian, South Indian, Maharashtrian, Fast Food, Beverages to the piquant spices of fine Chinese, fine-dining restaurants at Shaukeen Restaurant, Mumbai. Earlier, two subscribers would head out, order two dishes, be served four and pay for two. In a previous story published in Outlook Business, the start-up shared that it is losing Rs.25 per delivery, wherein the last mile cost per delivery is Rs.65. One of the most common issues among people worldwide is grocery going out-of-stock in both online and offline stores. The incident happened in the early hours of Friday. Within a week of launching liquor delivery, Zomato and Swiggy have fallen foul of liquor merchants and alcohol retailers’ bodies over fears of user data being monopolised and exclusive deals, reminiscent of the unrest in the food delivery space with the #logout movement last year. In an article darkly titled ‘Zomato Gold: A crisis that was waiting to happen’, he wrote: “On its part, Zomato may have forgotten a fundamental truth: it failed to understand how the added value was being created and its role in creating it. Then, why won’t it budge? Perhaps it was strategically placed before Independence Day, a public holiday which would have given Zomato a good deal of business. He says they have improved their technology and functioning so well that complaints/queries have come down. This would hamper their margins, which are already low.”. It recently modified the Gold scheme by limiting the number of unlocks per table. The data will stay with retailers and they will do home delivery so our app will guard their captive business,” Chopra was quoted as saying. And that is where the conflict zone is. The delivery executives have become more productive, in a way, and we are not really sure how that squares with lower pay. Meanwhile, some retailers also believe that Zomato and Swiggy might misuse the data. Unwind with a plate of dimsums or go the whole hog with the cod – this Zomato Gold Restaurant sure seems like heaven for those who dig Asian cuisine. Order in or go out with your friends, but make sure it’s all about that chocolate today. On the other side, Rahul Singh, founder of The Beer Cafe and former president of NRAI, rubbishes the report. Indian Startups, Entrepreneurship, News, Resources & More, Zomato and Swiggy recently started liquor delivery in Jharkhand and Odisha, Liquor retailers fear Zomato and Swiggy might misuse user data generated to leave out certain sellers, Smaller wine shops fear exclusivity deals with delivery apps will favour larger retailers. How far did Baba Ramdev stretch to bag Ruchi Soya? “I was one of the largest restaurants on the scheme, nobody called me. As a result, Zomato, which was losing maybe Rs 30-40 bucks an order till sometime back, is now making Rs 30 an order and which is why EBITDA burn in Zomato is down to maybe a couple of million dollars a month right now. If you can’t make it that day, you can ‘unlock’ it the next day. Last time I got Rs.250 after completing 12 deliveries,” he says. Kolkata: Delivery executives of Zomato in Howrah, West Bengal have accused the food app of hurting their religious sentiments by 'forcing' them to deliver beef and pork.The delivery executives have said that they will go on an indefinite strike from Monday to show their protest against the company's policy. Restaurants are not convinced. Can their love last? They have disrupted the market and changed consumer habits,” says Akshay Jatia, director – IT and Brand Extensions, McDonald’s India (West and South). Glorious desserts! That was aimed particularly at the FSA’s missive that food must be tested at specified labs. Remember his “food does not have a religion, it is a religion” line? Over the years, Mohammad Ali Road has become a must visit place every Ramadan. The whole circus needs investors to keep it running till it gets its business model right. Restaurateurs saw red and launched the #Logout movement on August 14. Why Ashish Kacholia, Mukul Agrawal and Kedaara Capital are hot on Religare Enterprises. @NRAI_India” This was on August 22 and Singh’s term ended this September. Each organisation can provide 5,000-100,000 employees as users to Zomato. The warring restaurateurs believe that Zomato’s refusal to back down over Gold membership is really not about them, but about the company’s survival. Then they may have spent it on their delivery partners such as Runnr and Grab or promotional expenses. Zomato is also starting to enter a whole new category, going beyond just listing restaurants, but also letting its users order from them. Did restaurants have such millennial worries? Location: Ground Floor, 12, Union Park, Off Carter Road, Pali Hill, Opposite Hakim Aalim, Bandra West, Mumbai, Maharashtra 400052 They hope to get 50% of their customers through this by end of this year. In less than 24 hours, around 1,000 restaurants dropped out of various platforms including EazyDiner, Dineout, Magicpin and Nearbuy, apart from Zomato and, within 45 days of its launch, the Infinity Dining feature was pulled out. The bigger footprint certainly seems like more cash burn. A report by the Economic Times also noted that retailers in Maharashtra, Odisha and Jharkhand don’t want food delivery apps to enter this state entric and excise regulated liquor space. Ni shagu nazad! His Red Army was fighting the Germans in the bloody Battle of Stalingrad in WWII. They plan to launch their own apps. Zomato meanwhile is trying various ways to make money. The order had no mention of ecommerce and had suggested retailers take orders through WhatsApp, email and phone calls. Also Vardhan writes, discounts can never really be a long-term plan. Earlier in August, 61 were laid off. “A discount play which is near to their bottom line would make the business unsustainable,” says Yadav. These startups take orders from consumers and pass them onto retailers. The new businesses range from supplying fresh kitchen ingredients to partnering restaurants or digitizing office canteens through Food@Work. Yogesh Sahu, a liquor retailer who owns stores in Bhubaneshwar, Bhawanipatna, Nabarangpur and Sundargarh in Odisha, said that most retailers buy products from the government wholesalers and have fixed margins. A 20-year-old Zomato delivery boy was killed after a speeding Mercedes car hit his scooter in Oshiwara area of Mumbai, Maharashtra. While it was to be an elite programme with only 5,000 subscribers, that number went up to 1.4 million spanning across 6,500 restaurants,drawing in FY19 revenue of $49 million. Earlier, the order, issued by state’s excise department dated May 13, had allowed the delivery of liquor by retailers outside of containment zones. Meanwhile, industry players have also requested the government for clear instructions for a level playing field. It was a big carrot to dangle in front of struggling business owners. These clients include names such as WeWork, Sony, Cognizant, Deloitte and so on. The president of NRAI, Anurag Katriar seemed to be tiring in the fight, from the tone of his message. Swiggy, too, runs such cloud kitchens through Access, which currently has 450 restaurant brands. "We have currently rolled out the online ordering feature in Delhi NCR with around 1000 restaurant partners and will soon go live with the feature in Bangalore and Mumbai with more cities to follow. This was when both the registered industry associations, The Federation of Hotels and Restaurant Association of India (FHRAI) and NRAI announced that they have joined forces against the “predatory practices” of Zomato and others FSAs. It appears so. Strategy consultant Harsh Vardhan believes Zomato urgently needs to back down, if it does not want to lose restaurant partners. Now it has come down to Rs.175 for 12 deliveries. This Zomato's API approach is at least odd. One that makes him and Zomato look good of course. Otherwise its founder and CEO Deepinder Goyal seems like a nice man. We envy pastry chefs and chocolatiers who get to work with chocolate day in and day out. ... Career News Bengaluru News Delhi News Mumbai News Samsung Zomato … Investors, Sanjiv Bajaj aur COVID-19. According to NRAI, till date, 3,000 restaurants have logged out of Zomato Gold out of the initial 6,500 restaurants. Hyderabad man uses Zomato to get free ride, ‘jugaad’ impresses Twitter In a post shared on Facebook, Obesh Komirisetty explained his idea. “After the #Logout campaign began, only 12% of the memberships have been renewed.”. In any partnership, if a key player tries to hog more value than he is creating in the game, the market will eventually punish him. But it’s not all lost because today you can try the fruits of their labour in the form of desserts. There was a lull in anger when Zomato came back with another salvo, in September, — Gold Membership benefits, of freebies, would be available for home-deliveries too, but with fewer offers. He talks of expanding beyond the 500+ cities and investing ahead of competitors in cloud kitchen in 50 cities. People of Mumbai turned out to be most generous in giving tips as Zomato said that tips worth a total of Rs 4.6 crore were received by its Mumbai delivery partners. “Until the first week of September, we used to get an additional Rs.250 for every nine deliveries we did. When all the adjacent restaurants are on Gold, you automatically join to keep your customers,” he says and adds that even after signing up for Gold, there was no increase in footfall. “During their last round of funding, Zomato promised the investors that Zomato Gold will grow 5x this year to 5 million,” he says, quoting an executive at the aggregator. Zomato has also raised subscription fee from Rs.1,000 to Rs. A restaurant operates on a small margin. The eateries who have logged out have decided to fill the digital void on their own. Vardhan wrote that discounts are usually used by firms to either liquidate their stocks or as a seasonal discount offer. Instead, the average order value fell by 25%. “Ecommerce platforms may be utilised by liquor shops permitted to do home delivery,” BMC municipal commissioner Iqbal Singh Chahal said in an order dated May 22, but it doesn’t state whether they would need to seek separate permissions. A 19-year-old Zomato delivery boy was crushed under the wheels of a speeding Mercedes car and dragged up to ‘1,000-feet’ in the Lokhandwala area of Andheri West in the wee hours on Friday. But they won’t have a clue what happened with these transactions. In 1942, a slogan was made famous by the Soviet leader Joseph Stalin: “Not a step back”. Going by its faulty ‘unlocking’ system, I could unlock ten restaurants across Mumbai within 10 seconds of each and Zomato can say that the guy went to 10 restaurants. So you have gone once, but the app registers two unlocks (or two spending customers). View Menus, Pictures, Ratings and Reviews for Best Dine-Out Restaurants in Mumbai - Mumbai Restaurants for Dine-Out Restaurants Zomato is the best way to discover great places to eat in your city. Both companies received approvals from the respective state governments as they looked to curb crowding at liquor stores. Also, when did this survey happen? Enrolment fee for hotels for dining-in Gold programme is Rs. A clear policy is needed to ensure that the interests of retailers are safeguarded,” said HipBar’s Natarajan. Today delivery contributes nearly three-fourths of the food aggregator’s earnings. 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