Zomato Customer Paid 34% More For Ordering Food Online! Internet Takes Notice, Zomato On Backfoot
A Zomato customer compared online and offline food order bills and discovered a disparity in the prices.
Rahul Kabra shared pictures of bills for the same food he ordered from Zomato and offline, on LinkedIn.
“Proof that #Zomato wants to make more money per order than the food service provider!” Kabra wrote.
He placed an order for veg black pepper sauce, veg fried rice and mushroom momo from The Momo Factory in East Kandivali, Mumbai via Zomato.
The cost for the same order but offline was INR 512
However the same but ordered online cost INR 690 (after applied discount of INR 75).
He wrote that this is an additional expense of 34.76% per order at INR 178.
He said that there is a need to put a limit to the extent food delivery apps can charge extra for online deliveries.
Not mindful of price conscious customers
He acknowledged that all start-ups are struggling with customer acquisition costs and that retention is the key to enhancing customer lifetime value.
However at the end of the day he is a price conscious Indian customer who will always make a “price to benefit comparative analysis as an end result of any higher pricing”.
He advised startups to not stretch the cost escalation too much, considering that customers are happy and willing to pay a price that is proportional to the benefit.
Taking undue advantage
Another user agreed with his sentiment, saying that he doesn’t blame food delivery apps since they have to make revenue and become profitable but resorting to these tactics may backfire on them.
Another complained that the app is taking advantage of the time constraints that customers pay for which they use the apps.
Zomato responded to Kabra’s post.
It said that Zomato is an intermediary platform between a customer and a restaurant and does not have any control over the prices set by restaurant partners on the platform
It forwarded his feedback to the restaurant partner and requested them to look into this.