Zomato plunges 15%, hits lowest level since July 2022 on heavy volumes
Published On: Wednesday, January 25, 2023 | By: Team KnowMyStock
Shares of food aggregator platform Zomato plunged 15 percent, hitting an almost six-month low of Rs 44.35, on the BSE in Wednesday's intra-day trade amid heavy volumes. Zomato on Tuesday announced that it was relaunching its loyalty program Zomato Gold – its fourth iteration in the last few years. With a starting price of Rs 149 for three months, Zomato Gold will replace Zomato Pro and Pro Plus, which were suspended in August 2022. This is a discount on the Rs 999 quarterly membership. Under the program, subscribers will get free deliveries at restaurants that are within 10 kilometers on orders above Rs 199. Gold members will also get discounts on food deliveries and dining out. There are also benefits such as a ‘No Delay Guarantee’ where members will receive a Rs 100 coupon for delayed deliveries. For dining in, members will get up to 40 percent off at more than 10,000 partner restaurants across the country.
"The relaunch of the loyalty programme is important due to growing concerns on sequential growth in Zomato's food delivery business and the high likelihood of the company having lost some market share to Swiggy in recent quarters as the latter had continued to run its loyalty programme especially when 'Pro Plus' was absent," analysts at JM Financial Instiutional Securities said in an internet sector update.
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