Zomato has put a brake on its first ever paid subscription service Zomato Treats after running it for over 18 months. Priced at 249 rupees a year, Zomato Treats used to offer free dessert on every online order. While the company will keep delighting existing subscriber but it has suspended the subscription service for new users.
The suspension of subscription comes at a time when Zomato’s rival Swiggy integrated delight that promises free dessert from selected restaurants to Swiggy supper subscribers.
Last week, Entrar had exclusively reported about bundling of delight into Swiggy super subscribers. While, Zomato hasn’t given any new figures for Treats subscribers recently, according to an ET report, it had about 2,50,000 subscribers till July this year. The Alibaba-backed food tech major has confirmed the suspension of Zomato Treats subscription to Entrackr. Since the beginning of this year, Zomato has a stellar ride within subscriptions including Gold and Piggy Bank. While the piggy bank has been able to attract over 1 million members who placed over 2 million orders using Z coins within two months of launch, Zomato Gold also sold like a hotcake. Unlike, Zomato that has been rolling out separate subscription programmes, Swiggy has been bundling several programmes into one – Swiggy Supper.
Until the last financial year, food delivery business was dominated by Swiggy. However, Zomato has impressed with its meteoric rise. With a mere 3.5 million deliveries a month at the beginning of this FY, 21 million monthly order run rate and lead over Swiggy supper. Although Zomato had stopped free sign-up to Treats, it’s expected to package it with Piggybank in near future. Since Swiggy and Zomato are slated to add more benefits to subscription programmes, consumers will have more reasons to subscribe them.