It seems troubles for Zomato doesn’t seem to end, as the Indian Hotel and Restaurant Association (AHAR) has decided to shun Zomato Gold delivery. It is considered as a major setback for the food delivery and search aggregator after entangling itself in various controversies recently.
The AHAR, which has 8,000 members nationally, has announced that it is unanimously boycotting delivery services by aggregator Zomato under its Zomato Gold programme with immediate effect, over allegations of delivery from illegally-run kitchens, steep discounts offered for Zomato Gold members and unavailability of delivery executives.
AHAR president Santosh Shetty said, “We had clearly told Zomato that we are completely against the Zomato Gold delivery service scheme and asked them to scrap it. However, there has been no action by the food aggregator on the same.” Zomato Gold on delivery offers members one free dish each time they place an order. Gold was extended to delivery by Zomato in September this year, amidst its stalemate with restaurants on dine-in services.
Notably, National Restaurants Authority of India (NRAI) in September itself had slammed Zomato over the unsustainable deep-discounting model of its flagship scheme Zomato Gold, the company’s troubles only seem to be mounting as the company has so far failed to make any headway with the NRAI. In total disregard for the concerns of the NRAI, Zomato had extended its flagship scheme Zomato Gold to home deliveries too which had prompted the NRAI to slam the food aggregator company over its ‘desperate moves.’ NRAI had stated in a statement that Zomato had chosen to extend the programme further to the delivery vertical as well in utter disregard to the viability of the restaurant fraternity.
The move led by the National Restaurant Association of India (NRAI) triggered a #Logout movement against the similar apps like Zomato Gold, MagicPin, EazyDiner, Nearbuy, and Dineout. Previously, over a 1000 restaurants from across the country had delisted themselves from the membership and restaurant reservation apps citing the adverse affects on their businesses due to the their deals and discount driven models.
Meanwhile, the National Restaurant Association of India’s (NRAI) deadlock with Zomato still continues over the controversial policies of the Zomato, with the association members continuing to be logged out of Zomato’s dine-in services.
AHAR has asserted deep discontent over the food aggregator’s Gold delivery service scheme and asked it to scrap it however there has been no action on Zomato’s part. Zomato has been neglecting the recommendations and counsel from the authorities in the hotel-restaurant business.
Interestingly, the value of Zomato in the market has been on decline amidst these controversies but anyhow the food aggregator is showing no urgency to resolve the going tussle. Last month, Commerce Minister Piyush Goyal had asked the NRAI to enlist its grievances against aggregator companies, including the issue of discounts.
From ‘food and religion’ uproar to halal-haram meat controversy, it seems problems for Zomato are not going to end soon until it changes the way of its working and doing business.
