At a time when the relaunch of foodtech giant Zomato’s customer loyalty programme ‘Zomato Gold’ has triggered debates about its impact on the growth margins, JM Financial has weighed in on the issue saying that it can lead to an increase in order volume.
The brokerage stated in a research note that while the company believes that the short-term negative impact of free deliveries due to the programme will be offset by improvements in other revenue and fixed and variable cost drivers, forecasting margins is complex, which has kept the debate raging. Zomato Gold was reintroduced in late January this year as a replacement for Pro Plus membership, which was discontinued in August of last year.
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