Zomato Gold, the paid subscription product from Zomato, which allows users to get complimentary food or drinks at around 2000 restaurants in Hyderabad, Pune, Delhi-NCR, Mumbai and Bangalore, has crossed 150,000 subscribers within three months of its launch. This represents a growth of 477% in three months, as Zomato had about 26,000 subscribers, apparently just around seven-eight hours after its launch, as per MediaNama estimates. (Read how we estimated that here) The number of partners on Gold now stands at 2300, compared to around 1100 at the time of launch.
In a blog on ‘making of Zomato Gold’, Deepinder Goyal, founder and CEO of Zomato, attributed the growth to word of mouth and referrals, as he wrote that 40% of its total sales were referral driven. In MediaNama’s previous post, Nikhil pointed out that one part which may have contributed to the viral growth is the fact that Zomato is offering 1 month extra to users for each referral they get, and anyone who signs up with a referral code gets 25% off.
Also note that, as per Zomato’s terms and conditions, it has taken rights to auto-renew the subscription, taking authorisation to “debit your payment method linked to the Zomato platform”. However in the latest blog, Goyal says that the company wanted the product to be completely “terms and conditions free” for the end user. And it has been able to achieve 99.99% of that vision.
Pricing to go up
Zomato Gold subscription was started with a launch price of Rs 299 for a quarter, and Rs 999 per year with limit of 10,000 subscribers. In the blog, Goyal said that the product pricing is 2.5x (Rs 799 for a quarter, and Rs 1899 per year), and the conversion rates on the plan page are still holding up, and that the company may again increase the price of subscription, as he wrote that “maybe there’s still a tonne of room to increase pricing“.
How Zomato Gold works
Zomato Gold allows a customer, depending on the restaurant, a complimentary food item of the same or lower value as the food item ordered, or 2 complimentary drinks for every 2 drinks ordered. The complimentary drink will be the same as what has been ordered, and is not applicable to pitchers, buckets and full bottles. The food offer is not valid on special menus, thalis, buffets and set menus. Note that there must be at least two people on the table to avail Gold benefits, and that Zomato Gold is not valid on Valentine’s Day, Christmas Eve/Day, New Year’s Eve/Day. It’s also not valid on home delivery or take-away, and cannot be clubbed with other discounts or offers.