Zomato to Introduce Extra Rain Charge for Gold Members Starting May 16

Zomato to Charge A Rain Fee for Gold Members

Three points you will get to know in this article:

  1. The foodtech major will now impose an extra rain fee, even for users on its Gold membership plan.
  2. The company states that this fee will assist in providing better compensation to its delivery partners during rainy weather.
  3. This development coincides with Zomato’s adjusted EBITDA reaching INR 428 Cr in the March quarter, reflecting a 56% year-on-year (YoY) increase.

Gold Membership Perks Take a Hit with New Rain Fee

Zomato logo

Just a week after Zomato declared a pause on its 50:50 refund-sharing policy with restaurants, the foodtech giant has introduced a significant alteration to its Gold membership perks.

Via its app, the foodtech major has made a discreet announcement that starting on May 16, it will implement an additional rain fee for all users, including those with Gold membership subscriptions.

This action will probably let down numerous Gold members, given that the cost was previously covered as part of the membership benefits.

Zomato Justifies Fee as Support for Delivery Partners

Zomato stated in the notification, “Beginning May 16, the surge fee waiver during rains will no longer be included in your Gold benefits.” It also mentioned, “This fee helps us provide better compensation to our delivery partners during rains.”

Zomato has been implementing rain surcharges for some time, usually beginning at INR 10–15 during inclement weather; however, Gold members were previously not subject to these charges.

However, it seems that this will contribute to the mounting frustration regarding hidden costs and diminishing benefits in the quick commerce sector.

Growing Frustration Over Hidden Charges in Quick Commerce

Only in March, media noted that consumer anger regarding dark patterns on 10-minute delivery apps has been rising steadily, mirroring the growth of the platforms’ revenues.

As players such as Zepto, Blinkit, and Swiggy are set to amass nearly $2 billion in revenue by the end of FY25, many consumers feel this growth relies on hidden fees and manipulative design tactics that frequently discriminate against different income groups, neighborhoods, and user profiles.

It should be highlighted that dark patterns have emerged as a contentious issue in the narrative of rapid commerce growth.

Dark patterns are designs of user interfaces and experiences that undermine consumer autonomy and encourage them to make choices that do not benefit them.

The guidelines enumerate various kinds of dark patterns, such as false urgency, basket sneaking, confirmation shaming (which induces guilt in users to make specific choices), forced actions (wherein unrelated actions must be taken to finish a task), and subscription traps that complicate the cancellation process.

Strong Financial Growth Despite Consumer Backlash

In the March quarter, Zomato’s adjusted EBITDA reached INR 428 Cr, reflecting a year-on-year (YoY) increase of 56% and a sequential rise of 2%.  Adjusted revenue increased by 17% year-on-year and decreased by 0.2% quarter-on-quarter (QoQ), amounting to INR 2,409 Cr. 

Additionally, Zomato removed 19,000 restaurants from its listings in Q4 and announced the closure of its Quick and Everyday services.

SA Team

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