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Zomato starts a subscription service to offer complimentary desserts

Restaurant listing and food delivery company Zomato is launching a new subscription-based product in India and UAE called Zomato Treats. Subscribers will ger a free dessert with every meal they order with participating restaurants. The subscription will be priced at Rs 249 per year and will be available in 16 cities where Zomato has food delivery; to begin with, the subscription will be available only to 20% of their users in Gurgaon.

Note that it hasn’t mentioned whether users will be allowed to choose the dessert they want or if it will be fixed by the restaurant.

This is a precursor to Zomato Gold, another subscription membership plan launched in Dubai and Abu Dhabi which will allow users to buy two drinks for the price of one at any day or time. Gold will come to Delhi, Mumbai and Bangalore somewhere in June, the company said.

“We will decide launch dates for other international cities depending on what we learn over the next few weeks/months. Our Melbourne, Johannesburg, and Istanbul teams are waiting eagerly to launch Zomato Gold in their cities,” co-founder Pankaj Chaddah, said in an earlier blog post.  Note that  Zomato Gold was launched in Lisbon, Portugal but the membership will only apply to food i.e. members will be able to order a dish for two people for the price of one.

New revenue stream 

The subscription programme is an interesting approach the company has taken to monetizing and will add a new revenue stream. The company’s revenue comes from listing services and online food delivery currently. For the year FY17, food ordering accounted for $9 million in revenues, around 8 times of FY16. Meanwhile, ad sales accounted for $38 million in revenues in FY17, 58% higher than FY16. Zomato reported revenues of $49 million for the financial year ended 31st March 2017 (FY17), a growth of 80% over FY16.


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