Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 6 pages
Data source: Published sources
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Abstract
In August 2019, about 300 restaurant owners logged off from food platforms that offered discount programs at dine-in restaurants. Their protest named as the #Logout campaign generated a lot of buzz taking the internet by storm. The campaign was against online food aggregators in India such as Zomato, Uber Eats and Swiggy which offered great discounts on dine-in orders. The campaign was mainly targeted at Zomato's Gold program which offered two dishes for the price of one to members who came to dine in. The National Restaurant Association of India (NRAI) was of the view that these offers hurt their business especially during the economic downturn and hence decided to log out of the online players' platforms. NRAI took to twitter to say that their move was to detox consumers of their discount addiction. But, from a customer view point these offers were hugely advantageous and promoted the eating out culture. While assuring that it was taking the issues raised by NRAI into consideration, Zomato went ahead and extended Gold to delivery with minor tweaks to the program. Meanwhile, NRAI countered saying that the program was still unacceptable to them and that it would remain logged out and continue with the campaign. Market watchers wondered how this tussle between the two parties would end.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Asia
Country:
India
Featured companies
Zomato
Employees:
5001-10000
Turnover:
USD 206 million (FY19)
Type:
Self-owned
Industry:
Restaurant aggregator and food delivery app
Uber Eats
Employees:
1001-5000
Type:
Self-owned
Industry:
Restaurant aggregator and food delivery app
Swiggy
Employees:
10000+
Type:
Self-owned
Industry:
Restaurant aggregator and food delivery app
About
Abstract
In August 2019, about 300 restaurant owners logged off from food platforms that offered discount programs at dine-in restaurants. Their protest named as the #Logout campaign generated a lot of buzz taking the internet by storm. The campaign was against online food aggregators in India such as Zomato, Uber Eats and Swiggy which offered great discounts on dine-in orders. The campaign was mainly targeted at Zomato's Gold program which offered two dishes for the price of one to members who came to dine in. The National Restaurant Association of India (NRAI) was of the view that these offers hurt their business especially during the economic downturn and hence decided to log out of the online players' platforms. NRAI took to twitter to say that their move was to detox consumers of their discount addiction. But, from a customer view point these offers were hugely advantageous and promoted the eating out culture. While assuring that it was taking the issues raised by NRAI into consideration, Zomato went ahead and extended Gold to delivery with minor tweaks to the program. Meanwhile, NRAI countered saying that the program was still unacceptable to them and that it would remain logged out and continue with the campaign. Market watchers wondered how this tussle between the two parties would end.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2019.Geographical setting
Region:
Asia
Country:
India
Featured companies
Zomato
Employees:
5001-10000
Turnover:
USD 206 million (FY19)
Type:
Self-owned
Industry:
Restaurant aggregator and food delivery app
Uber Eats
Employees:
1001-5000
Type:
Self-owned
Industry:
Restaurant aggregator and food delivery app
Swiggy
Employees:
10000+
Type:
Self-owned
Industry:
Restaurant aggregator and food delivery app