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<ul><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> has announced a 225% jump in revenue to touch $205 million in the first half of FY2020. </li><li>Its monthly burn rate is down to 60% from what it was 6 months ago. </li><li>Its active gold members have also gone up by 180%.</li></ul>Zomato said that its revenue for the first half of the year jumped by 225% to $205 million. The food aggregator said that it cut its losses as its monthly burn rate is down to 60% from what it was 6 months ago. Zomato has also said that its orders have gone up by 290% as compared to first half of FY19. Its customers are placing over three million orders in a month. “Our order volumes in top 15 cities have doubled in the last 12 months; while the remaining cities already contribute 35% to our order volumes,” said the company in a statement. Its active gold members have also gone up by 180%. Interestingly, Zomato’s monthly active restaurants have gone up by 177% in H1 FY2020, as compared to H1 FY2019. The number of restaurant listings globally on Zomato also grew from 1.2 million in September 2018 to 1.5 million in September 2019. This is in spite of Zomato being at the centre of a massive logout event in the last few months. Zomato was caught in the throes of a very public controversy thanks to its deep discounting programmes like Zomato Gold and infinity dining. Some of its offer provide consumers with offers like 1+1 on food and 2+2 on drinks. The National Restaurant Association of India (NRAI) launched a ‘logout’ movement last month claiming that the business practices of aggregators are unethical. Hundreds of restaurants delisting from the app, as a part of the movement. “At the start of the ‘logout’ campaign, we had over 6,100 restaurants in India on Zomato Gold (for Dining Out); as of today, we have over 6,300 restaurants in India on Gold (for Dining Out),” said the company.

Zomato’s revenue jumps by 225% and number of gold restaurants grew even during the logout movement

<ul><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> and <keyword id="2808667" type="PERSON" weightage="20" keywordseo="OYO">Oyo</keyword> have both been in the eye of many public controversies, stirred by industry bodies.</li><li>While Zomato has been in the middle of a <keyword id="7998183" type="UNKNOWN" weightage="20" keywordseo="logout-movement">logout movement</keyword> from restaurants, Oyo has been dealing with legal complaints against its founder for breach of trust. </li><li>This has affected the public branding and image of the companies.</li></ul><keyword id="476451" type="PERSON" weightage="20" keywordseo="Deepinder-Goyal">Deepinder Goyal</keyword> and <keyword id="1670338" type="PERSON" weightage="20" keywordseo="Ritesh-Agarwal">Ritesh Agarwal</keyword> maybe poster boys of the Indian startup industry. But,the founders of Zomato and Oyo are dealing with complaints from industry bodies, associations and even backlash from their own employees. Startups which have started to solve existing problems, are now facing their own. The problems surrounding Zomato and Oyo Zomato was caught in the throes of a very public controversy thanks to its deep discounting programmes like Zomato Gold (where consumers can avail 1+1 on food and 2+2 on drinks) and infinity dining. The National Restaurant Association of India (NRAI) launched a ‘logout’ movement last month claiming that the business practices of aggregators are unethical. The movement saw hundreds of restaurants delisting from the app. But that’s not the end of it. Zomato’s delivery executives across Mumbai and Bengaluru are protesting for pay cuts. The company is also in the news for reportedly laying off employees at its Gurgaon headquarters. Oyo is in no better position. On one hand, it is battling legal complaints from a Bengaluru-based hotelier accusing Agarwal of cheating and breach of trust. A month ago, hoteliers too had begun boycotting Oyo, but the Delhi High Court had ruled the case in the company’s favour. To tackle these issues, Zomato reportedly held several meetings with the NRAI. It also backtracked by cutting off discounts from its Zomato Gold programme. It has also put its recently launched Infinity Dining programme on a ‘pause’ mode. Oyo, on the other hand, has refuted all claims against its founder and has been unfazed through its expansion journey globally. The branding has taken a hit Startups and their success is important not just because of their disruptive nature, but their popularity has made them almost invincible with a ‘can-do’ attitude. These issues have come to prove that it is not the case. And, it has started to show. This is evident in its survey rankings. YouGov measures a brand by the buzz it generates in two weeks. Zomato’s Buzz fell by 6.8 points, from 42.7 in the beginning of July, to 35.9 in August end. “Zomato’s Brand Index score which is an average of quality, value, impression, reputation, satisfaction and recommend scores, has also fallen from 38.5 on 31st July to 34.9 on 31st August 2019, the time period marked by the two controversies,” said YouGov. This is a big blow for Zomato which is known for its witty, quirky marketing campaigns on and off-line that has caught the fancy of millennials. The company however said that its own internal tracking system shows no significant dip in perception in the last 3 months. "On the contrary, metrics such as trust, brand love, innovation, etc. have shown consistent upswing. These metrics are tracked diligently on a daily/weekly/monthly basis and none of the external noise has impacted our core consumer perception in a negative manner. In fact, we have noted a spike in the user engagement with an increase in average time spent on the app, session counts, weekly downloads, etc. These results from continuous monitoring have reaffirmed our current approach towards consumer engagement and product innovation,” said a Zomato spokesperson. Brand expert Harish Bijoor believes that Zomato and Oyo both need to be worried. “We live in the era of nano-second social media hurt. Every social media comment that is hurtful to the brand is a scar. Too many scars, and the brand can get into a negative tizzy. Brands need to be careful, and more importantly quick in their reactions to issues. Both Zomato and Oyo have been through this. As of now, the brand image has not been hurt. it has been jolted, but not damaged,” said Bijoor.

It's a stormy time for two of India's biggest startup brands

<ul><li><keyword id="476451" type="PERSON" weightage="20" keywordseo="Deepinder-Goyal">Deepinder Goyal</keyword> shared screenshots to show that NRAI chief <keyword id="62211" type="PERSON" weightage="20" keywordseo="Rahul-Singh">Rahul Singh</keyword> has started his own Gold programme for his chain of restaurants – <keyword id="1440596" type="PERSON" weightage="20" keywordseo="beer-cafe">Beer Cafe</keyword>. </li><li>With this, Goyal said they are ‘logging out of the <keyword id="7998183" type="UNKNOWN" weightage="20" keywordseo="logout-movement">logout movement</keyword>’ and stick to the changes they offered in Gold. </li><li>The logout movement was led by the NRAI against the deep discounts offered by <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword></li></ul>In a dramatic twist, Zomato’s founder Deepinder Goyal has gone on record to say that the logout movement seems to be motivated by a vested interest of Rahul Singh, who runs the Beer Cafe chain and heads the National Restaurants Association of India (NRAI). However, Goyal’s attack on Singh was rather sarcastic. <div type="twitter" handle="deepigoyal" handlename="Deepinder Goyal" image="http://pbs.twimg.com/profile_images/980757579360972800/TWg-KSki_normal.jpg" favoritecount="310" retweetcount="319" status="I welcome the NRAI president, Rahul Singh embracing the Gold standard at his own restaurants. Welcome to Gold, Rahu… https://t.co/hTsTniiR1n" createdat="1566470631000" id="1164488344320933889"></div>

 Calls and texts sent to Rahul Singh from Business Insider remain unanswered. The NRAI and Zomato have been engaged in a bitter dispute over the foodtech giant’s discount programme that goes by the name ‘<keyword id="4299597" type="PERSON" weightage="20" keywordseo="Zomato-Gold">Zomato Gold</keyword>’. The battle has led as many as 2,000 restaurants across India to logout of the platform including those from Tier 2 cities, according to Rahul Leekha, owner of Coffee by Di Bella and a member of the NRAI. The latest salvo from Goyal seems like an attempt to split the community of restaurant owners. He shared screenshots of the gold programme launched by Beer Cafe in August itself and implied that the movement against Zomato benefited a few large chains at the expense of smaller ones. “This is not about aggregators vs restaurants; this is about the small restaurant owner vs the large restaurant owner - and we are being painted as bullies. This logout campaign as it seems now, is driven by Rahul Singh, along with the participation of a few large restaurant owners, to use the NRAI platform to sabotage aggregators and benefit themselves,” Goyal wrote in his post. The logout movement was started by the NRAI chief Singh and multiple other restaurants against the deep discounting offered by food aggregators. Zomato had then offered to change its Gold programme to restrict the usage frequency, allowing consumers to use it just once in a day, which it is planning to stick to.

Zomato founder Deepinder Goyal smells a conspiracy - says restaurants association chief Beer Cafe’s Rahul Singh has a vested interest in dissing ‘Gold’

<ul><li>Zomato’s CEO <keyword id="476451" type="PERSON" weightage="20" keywordseo="Deepinder-Goyal">Deepinder Goyal</keyword> took to Twitter said this is a ‘wake up call’ for them and asked restaurant owners to stop the logout campaign.</li><li>Goyal asked restaurant owners to look at ways to reduce operating costs. </li><li>This angered restaurateurs on Twitter who mocked Goyal for his lack of understanding.</li></ul>Food aggregators in India who offer massive discounts on their platforms to lure customers are facing a problem. The National Restaurant Association of India (NRAI) launched the ‘logout’ movement last week claiming that the business practices of aggregators are unethical. A leading foodtech aggregator Zomato’s CEO Deepinder Goyal took to Twitter to address the issue, saying this is a “wake up call” for them to make things better with their restaurant partners, and asked them to stop the logout campaign. 
	<div type="twitter" handle="deepigoyal" handlename="Deepinder Goyal" image="http://pbs.twimg.com/profile_images/980757579360972800/TWg-KSki_normal.jpg" favoritecount="913" retweetcount="166" status="Our thoughts on the restaurant industry’s stand against deep discounting – 1 - Zomato Gold has been a major hit,… https://t.co/yML7yJBgAg" createdat="1566053417000" id="1162738425729916929"></div>



 At the root of the problem lies the company’s hit offering – <keyword id="4299597" type="PERSON" weightage="20" keywordseo="Zomato-Gold">Zomato Gold</keyword>, which offers consumers avail of 1+1 on food and 2+2 on drinks. Zomato also launched the infinity dining feature, where users for a fixed cost can order everything off the menu. However, Goyal himself admitted that “bargain hunters have also joined Zomato Gold and they are hurting some segments of the restaurant industry very badly.” He also promised to modify Zomato Gold which will result in a win-win situation. But he also asked restaurateurs to do their part. He wrote, “I would also want to urge the restaurant industry to proactively look at ways to reduce operating costs, so that eating out becomes more affordable for consumers - our only objective here is to drive the growth of the restaurant industry.” His statement led to multiple restaurant owners ridicule him for not understanding the costs involved in running a restaurant. Most restaurant owners pointed out that it’s the massive discounts offered by food aggregators that is hurting the consumers. Noted restaurateur Riyaaz Amlani mocked the entrepreneur and wrote, “Visionary idea as usual! Maybe we can fire restaurant workers? Or put a gun on our landlord heads to reduce rent? Or buy inferior ingredients so that we can reduce costs, and offer lower prices to accommodate your vision. Why didn’t I think of this before?”

Zomato CEO Deepinder Goyal responds to the ‘logout’ movement – restaurant owners mock him on Twitter

<ul><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> has launched a video section on its platform, which will have 18 original shows. </li><li>Starting Monday, the platform is going to offer viewers and foodies original shows, recipes and more with over 2,000 videos.</li><li>This makes the <keyword id="2955508" type="PERSON" weightage="20" keywordseo="food-aggregator">food aggregator</keyword> unicorn the latest one to join the Indian OTT race. </li></ul>Zomato knows you order food from the app while binge-watching stuff on Netflix, Amazon Prime, Hotstar etc. But the food aggregator doesn’t want you to leave its app. So it has launched its own video platform and original shows. Through the video section on the Zomato app, the platform is going to offer original shows, recipes, and more with over 2,000 videos. It's launching 18 original shows, each of which will have episodes ranging between 3 to 15 minutes. The shows have been shot on a vertical frame making way for mobile-easy viewing. These videos will range between comedy, reality, fiction, advice, celebrity interviews and will explore food in unique, engaging and entertaining videos, Zomato said in a statement. The released trailer shows content from star Chef Sanjeev Kapoor, comedians like Sumukhi Suresh and Sahil Shah and a cooking show with Bollywood stars which will be hosted by Janice Sequiera. The Indian OTT space has been buzzing with new entrants and mergers. Recently, e-commerce giant Flipkart announced its entry into the video content war, which in India is currently led by the likes of Netflix, Amazon Prime Video and Hotstar. Smaller players like AltBalaji and Zee5 had announced a partnership to produce content together. Meanwhile, Zomato’s entry into the video space comes at a time when its food vertical has been in the eye of multiple controversies thanks to its discounting features like Zomato Gold and Infinity Dining.The National Restaurant Association of India (NRAI) launched a ‘logout’ movement last week claiming that the business practices of aggregators are unethical. Now, Zomato has put a ‘pause’ on its infinity dining feature.

Zomato launches its own video platform with original shows

<ul><li>Big Indian startups have been in the public eye for many controversies thanks to the concerns raised by various <keyword id="946463" type="PERSON" weightage="20" keywordseo="industry-bodies">industry bodies</keyword>. </li><li>From ban on sales to stopping discounts, industry bodies have picked a fight against startups. </li><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword>, Oyo, Flipkart and Amazon have all been affected by the same. </li></ul>Indian startups have a growing problem at home – industry bodies from different sectors are now up in arms against discounts and deals. From Zomato and Oyo to Flipkart and even the global retail giant Amazon is caught in a fight. Here’s a look at all that’s gone down between industry bodies and startups in just the last month. Restaurants vs online aggregators All seemed to be going well between Indian restaurateurs and online aggregators until last month. The National Restaurant Association of India, which has over 500,000 outlets as members, woke up to the many deals presented by the likes of Zomato, <keyword id="6358977" type="UNKNOWN" weightage="20" keywordseo="swiggy">Swiggy</keyword>, EazyDiner, Dineout etc., and said that the excessive discounts offered by the delivery apps are throttling their businesses. Zomato bore the brunt of the restaurants’ ire – from the logout movement to social media uproar from hoteliers It had also faced protests from its delivery executives, who were not happy with the pay cuts from the aggregator. The foodtech unicorn paused on its Infinity Dining feature and curtailed the Zomato Gold program but the restaurants remain animus towards the firm. Despite many attempts to thaw in the frosty relationship there is no resolution yet for Zomato and Swiggy. Hotel associations against Oyo Oyo Hotels &amp; Homes in the past few years has grown at a rapid pace to have its signboard up in every big city, and many small towns-- adding up to 270,000 rooms across the country. But in its fast acquisition of buildings and hotels, some traditional hoteliers have raised concerns about ‘illegal practices’. Oyo is battling legal complaints from a Bengaluru-based hotelier accusing Ritesh Agarwal, the founder, of cheating and breach of trust. A month ago, hoteliers too began boycotting Oyo but the Delhi High Court ruled the case in favour of the $5 billion startup. The good ol’ e-commerce fight Indian e-commerce has long been in the eye of public dissent from industry bodies. The likes of Flipkart and Amazon were the first to be hit because of their deep discounting which allows them to acquire customers faster. With the festive season around the corner, Flipkart and Amazon both have massive sales coming up. Flipkart is in fact getting ready with its annual sale – The Big Billion Day Sale. However, now the Confederation of All India Traders is demanding a <a href="https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/ahead-of-diwali-sale-cait-says-ecomm-giants-flouting-rules/71167595">ban </a>on these sales. The CAIT is an industry body for over 7 crore traders. The body has alleged that the two e-commerce giants are violating the Foreign Direct Investment rules with their massive ad campaigns. It has also written to Union Minister Piyush Goyal regarding the same.

India’s biggest startups are faced with growing resistance from industry bodies

<ul><li>The CAIT is seeking probe and has alleged that <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> are avoiding a tax liability. </li><li>Meanwhile, <keyword id="2808667" type="PERSON" weightage="20" keywordseo="OYO">OYO</keyword>’s troubles continue with hotel owners alleging unethical practices followed by the company. </li><li>Following the <keyword id="92417" type="ORGANIZATION" weightage="20" keywordseo="NRAI">NRAI</keyword>’s path, the Indian Hotel and Restaurant Association (AHAR), which has 8,000 members nationally is also claiming to have logged out of <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword>. </li></ul>India’s biggest startups have been solving its systemic problems to build businesses. But the system has now started revolting and it could be another trouble that they have to solve. Startups like Oyo, Zomato, Amazon, Flipkart which have all disrupted traditional setup are now facing challenges that come with overtaking a market. Here’s a look at how trouble is brewing for the companies. Amazon and Flipkart Amazon and Flipkart are united in a rare case – where they both are facing a protest from the Confederation Of All India <keyword id="6371444" type="UNKNOWN" weightage="20" keywordseo="traders">Traders</keyword> (CAIT). While trader protests have been a part of the e-commerce journey so far in India, it has intensified with the CAIT now seeking a <a href="https://www.livemint.com/companies/news/cait-seeks-probe-into-alleged-avoidance-of-tax-liability-by-amazon-flipkart-11574620469832.html">probe </a>against Amazon and Flipkart. The CAIT alleged that Amazon and Flipkart are evading tax. It said that the companies are selling products for much lower than their fair price value, thus avoiding a larger GST cost. “Since FDI is governed by the FEMA and the Reserve Bank of India, it is demanded that an another enquiry may also be initiated on pattern of receivable funding and its disbursement," CAIT <a href="https://www.livemint.com/companies/news/cait-seeks-probe-into-alleged-avoidance-of-tax-liability-by-amazon-flipkart-11574620469832.html">said.</a> Earlier, the CAIT also organised a nationwide protest against the deep discounting of products on Amazon and Flipkart. OYO OYO brought Indian budget hotels online and shot to fame thanks to its many customers. But hotel owners who they work with are alleging that OYO’s practices are unethical. Recently, a Bengaluru hotelier filed a cheating case against Agarwal and six others claiming that the OYO hasn’t paid him his dues. According to the complaint, OYO was supposed to pay ₹7 lakh a month for room bookings but failed to do so since May 2019. OYO responded stating that it would fight back with a complaint against the hotelier for "using improper legal means to sensationalise a civil dispute and get attention". “This matter is currently sub-judice, and we are not at the liberty of commenting on specifics. Having said that, we strongly refute the claims made in the complaint that has been wrongfully filed against our founder and six other office bearers, based on false allegations and exaggeration on a regular commercial dispute,” the company said in a statement. The case of the Bengaluru hotelier is not isolated. Similar reports have surfaced from across the country against <a href="https://www.thenewsminute.com/article/why-many-hotel-owners-across-india-are-agitated-oyos-business-model-106154">OYO</a>. Zomato Indian foodtech unicorn has had a rough few months thanks to one of its bestselling features – Zomato Gold. The National Restaurant Association of India protested against the feature saying that Zomato advertised the ‘elite’ feature which turned out to be a mass product. This resulted in thousands of restaurateurs logging out of Zomato. The foodtech aggregator had shut down the logout movement by not offering discounts for its gold membership. However, it also extended the service for home delivery, where users could avail the 1+1 and 2+2 offers. Now, following the NRAI’s path, the Indian Hotel and Restaurant Association <a href="https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/8000-strong-hotels-body-to-shun-zomato-gold-delivery/articleshow/72215761.cms">(AHAR)</a>, which has 8,000 members nationally is also claiming to have logged out of Zomato because of Gold on delivery and other issues like unavailability of delivery executives.

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Zomato’s revenue jumps by 225% and number of gold restaurants grew even during the logout movement

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It's a stormy time for two of India's biggest startup brands

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Zomato founder Deepinder Goyal smells a conspiracy - says restaurants association chief Beer Cafe’s Rahul Singh has a vested interest in dissing ‘Gold’

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Zomato CEO Deepinder Goyal responds to the ‘logout’ movement – restaurant owners mock him on Twitter

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Zomato launches its own video platform with original shows

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India’s biggest startups are faced with growing resistance from industry bodies

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Oyo, Zomato, Amazon, and Flipkart are chasing growth but the very foundation is shaking

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