Zomato Shuts Down This Privilege Service For Customers: Was That So Bad?

Recent developments indicate that the food tech platform Zomato is recalibrating its loyalty programs.

Discontinuation of Zomato Pro Program 

 To start with, the food delivery firm has closed new sign ups and renewals for its flagship program Zomato Pro, according to the sources. 

Prior to this, it had shut down the more premium iteration Zomato Pro Plus.

Recently, the food aggregator discontinued its ‘Pro’ and ‘Pro Plus’ programmes for its users, two years after introducing the plans.

Moreover, Zomato has revised the terms of its co-branded credit card with RBL Bank.

Changing Game Of Zomato Share

Following the event of discontinuation of its ‘Pro’ and ‘Pro Plus’ programmes, a week after the shares of Zomato Ltd. posted their best day.

While giving an update on its services,  Zomato said its Pro Plus service is unavailable for renewal and that the company is working on a new experience, in a tweet.

With Zomato Pro membership, one can get additional benefits over normal users, along with gaining access to exclusive delivery offers.

On top of that,  mostly the orders for Pro members were delivered faster than the normal orders, on average.

Continuing the winning streak for the second day, the shares of Zomato rose over 5% intraday and closed with 4% gains.

So far, Zomato stock has underperformed the benchmarks this year, losing 53% compared to 2.4% for Sensex. 

According to the Bloomberg data, out of the 23 analysts tracking the company, 19 maintain a ‘buy’, and two each suggest a ‘hold’ and a ‘sell’. 

Moreover,  its stock’s 12-month return potential is 27.5%.