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Lockdown 2.0: Zomato ends funding of discounts amid Covid-19 outbreak

Restaurants brace for price hikes through menu revision after lockdown

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Restaurants working as parcel services are battling high input prices, lack of packaging material, labour shortages, and limited serviceability due to timing restrictions | Photo: Zomato

Shally Seth Mohile Neha Alawadhi Mumbai/New Delhi

3 min read Last Updated : Apr 28 2020 | 1:30 AM IST

Starting Monday, Zomato is withdrawing the funding of merchant discounts (sharing discounts offered by its restaurant partners) as it seeks to cut losses in a competitive food-delivery market. The move signals the end of hefty discounts for customers, on the one hand, and adds to the woes of the beleaguered restaurant industry, on the other.

Amid the viral outbreak, the rationale behind the move is safety for its customers and restaurant partners, and its own survival, said a spokesperson for Zomato.

“Discounts drive impulse purchases, and we want to serve only the most essential food-delivery orders now — for our

Topics : Coronavirus Zomato e-commerce discounts NRAI restaurants Food delivery

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