Zomato has agreed to remove a contract term that penalised restaurants when they offered cheaper food to walk-in diners, a source said. Eateries argued the clause effectively interfered with their pricing decisions. The removed policy could have charged fines equal to three times the price difference per order, pushing Zomato to revise terms after pushback.
Zomato has reportedly dropped a pricing clause following pushback, according to a source cited by Economic Times. The change comes as the company rides strong demand for food delivery, with 24 million consumers and 300,000 restaurants on its app. Zomato’s shares have more than doubled since 2021, valuing the company at nearly $26 billion.
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Zomato has withdrawn a contract term that required restaurants to match dine-in and website prices to its platform rates, Reuters first reported. The clause also allowed Zomato to impose fines up to three times the price difference and investigate via complaints or “mystery shopping,” though sources say it was never enforced. The move follows ongoing commission-model discussions amid intensifying competition.
Walmart-owned Flipkart is reportedly gearing up to enter India’s movie and concert ticketing market with a planned May launch, targeting fast-growing demand for live events. The initiative pits Flipkart against incumbents like BookMyShow and Zomato’s District. The company is also piloting food delivery, suggesting a broader expansion into fiercely competitive, lower-margin categories.
India’s big QSR players are facing a sharp shift as food delivery platforms like Zomato change customer control. Despite still-rich valuations, stocks tied to brands such as Westlife and Jubilant have stumbled. Margin pressure, slower growth hovering in single digits, and empowered local competition are eroding the old advantage of scale—raising a new question: who owns the customer now?
Deepinder Goyal revealed on the Raj Shamani podcast that Zomato initially resisted Swiggy’s move into last-mile logistics. He said he dismissed the approach for years, convinced the economics were “off” and that the model could never make money. However, customer enthusiasm shifted the reality, leaving Zomato with little choice but to adapt.
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