A Zomato customer recently used a social media platform to draw attention to highlight the shocking difference in the prices when ordered online and offline. The customer, named Rahul Kabra compared the food prices of the online and offline bills. Kabra, who is a performance marketing manager, shared two images of identical food orders on LinkedIn, demonstrating how an order in Zomato that cost Rs. 689 could be purchased for Rs. 512 offline. Meanwhile, following the post, Zomato responded to Kabra’s statement.
According to the LinkedIn post, Kabra had ordered Veg black pepper sauce, vegetable fried rice, and mushroom momo, in which the food delivery platform is showing Rs. 269, Rs. 245, and Rs.175 respectively. Whereas, the same ordered food items are showing a much lesser price when taken offline. Kabra started the post by saying, “Proof that #Zomato wants to make more money per order than the food service provider!”
The Zomato user further added that the total price displayed on the food delivery platform is yet the discounted price which is showing after applying a discount of Rs. 75. He wrote, “assuming Zomato brings visibility and more orders to the food service provider, should it charge such high price?”
Kabra also showed the ‘cost escalation’, where Zomato charged 34.76% more, per order. He said, “cost escalation 34.76% per order at INR 178 = (690-512)/512”. In addition to this, he said, “I think there is a need to cap this cost escalation which should be implemented by the government so as to make this a win-win for all stakeholders.”
Kabra further continued that people will ultimately stop ordering from Zomato or switch to another option once they become aware of the high cost of Zomato delivery. He also highlighted, “Customer acquisition cost is what all start-ups are struggling with. Retention is the key to enhancing customer lifetime value.”
Before ending his statement, he said, “I must say me being a normal value-driven Indian customer, at the end of the day will always make a price to benefit comparative analysis as an end result of any higher pricing.”
Take a look at the Zomato online food bills post:
Besides this, the food delivery application, Zomato replied in the very post, saying, “Zomato being an intermediary platform between a customer and a restaurant, does not have any control over the prices implemented by the restaurant partners on our platform.” The company further added that they have informed the restaurant partner of his feedback and asked them to check into this.