Food delivery player Zomato’s scrip fell nearly 15% to Rs 44.35 in Wednesday’s trading session after the company announced the relaunch of its Gold subscription program.
This comes nearly 30 months after Zomato Gold was replaced by Zomato Pro, and was discontinued last year.
The new Zomato Gold membership costs Rs149 for a three-month subscription. This is a reduction of Rs999 in the quarterly membership fee.
Subscribers will receive free delivery at restaurants within 10 kilometres of their home if their order exceeds Rs199. Gold members will also receive discounts on food deliveries and restaurant dining.
'Amid a decline in government expansion, characterized by a decrease in monthly active users and a decrease in ordering frequency, this strategy may alleviate growth concerns. However, we believe a combined loyalty program for Zomato and Blinkit would be a more favorable option,' Nuvama Institutional Equities stated.
Despite rumors to the contrary, Zomato has categorically denied any plans to discontinue its popular 'Zomato Instant' food delivery service, which promises to deliver meals to customers within a mere 10 minutes. The company has gone on record to state that the service remains an integral part of its operations, and any speculation to the contrary is unfounded.
At around 1.37 PM, Zomato’s counter was trading at Rs48.05, down by 7.77% against the previous close of Rs52.10 on NSE.
The US Federal committee's meeting will conclude on March 16, 2022.
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