What you need to Know
Zomato introduced a fee for vegetarian orders placed using the ‘veg mode’ feature, sparking backlash from users.
Bengaluru-based Rohit Rajan criticized the move in a viral LinkedIn post, calling it a “luxury tax” on being vegetarian. It included features like green-colored delivery boxes, sourcing orders from pure-veg restaurants, and using a dedicated veg-only fleet.
The company removed on-ground segregation after initial controversy, but kept the dedicated vegetarian fleet active.
Addressing these issues can help Zomato strengthen its relationship with users and maintain its leadership in the food delivery industry.
Zomato, a major food delivery website, has also recently been the subject of public outcry after its alleged introduction of a fee on pure vegetarian orders. This was due to the said orders being ordered through the website's 'veg mode'. Users have extensively criticized the platform, with numerous users taking their grievances to social media. Also includes Rohit Rajan, the Bengaluru local whose long-linked-in post somehow caught the eyeballs of Deepinder Goyal himself, the Chief Executive Officer for Zomato. Let us dig into that and how wider this problem spans for the organisation and the stakeholders.
The Introduction of the ‘Veg Mode Enablement Fee’
Zomato's 'veg mode' feature was initiated to cater specifically to customers that strictly follow a vegetarian diet. This option allowed users to sieve out non-vegetarian orders and ensure those orders were cooked and delivered through a dedicated fleet of vegetarians. However, the recent step of charging additional fees for using this service have outraged users claiming it is nothing but an expense they do not need to bear.
The controversy took a serious turn when Rohit Rajan's post on LinkedIn went viral. In the post, Rajan called the fee a "luxury tax" on being vegetarian. He expressed his disappointment with Zomato's decision, stating that the actions of the platform amount to penalizing the users for their dietary preferences. "Zomato's latest masterstroke – introducing an 'extra charge' for the veg enablement fleet – has officially turned us into a premium subscription plan," he wrote.
CEO Deepinder Goyal’s Response
It didn't go unnoticed in the leadership circle of Zomato. CEO Deepinder Goyal responded to Rajan's post directly. He expressed his dismay over the issue and went on to say that the fee was "absolutely stupid". He issued a public apology on the matter.
This is absolutely stupid on our part. I am super sorry for this. This charge will be removed today itself," Goyal wrote in a comment on the post. His prompt acknowledgment of the mistake and commitment to rectifying it earned praise from netizens. Many praised the CEO for his transparency and quick action towards addressing the subject.
A Brief History of Zomato’s ‘Veg Mode’
Zomato had first rolled out its 'pure-veg fleet' and 'pure-veg mode' last March to serve the vegetarian customers specifically. The service had a number of elements designed to keep vegetarian customers satisfied, including:
Vegetarian orders would be differentiated by green-colored delivery boxes.
Deliveries would only come from 'pure-veg' restaurants.
Vegetarian delivery staff would be assigned exclusively for delivery.
The move was appreciated by many vegetarians, but it also raised several debates on whether such segregation is practical and how it would work. A day after the feature rolled out, Goyal took to X (formerly Twitter) to clarify the company's stand. He announced that the platform will continue to offer a dedicated vegetarian fleet but will end on-ground segregation practices, including the use of green-colored delivery boxes.
This means that the fleet meant for vegetarian orders will not be identifiable on the ground but will show on the app that your veg orders will be served by the veg-only fleet," Goyal said.
Notably, Zomato had not levied any surcharge on the veg orders when the 'veg mode' was first launched. The 'veg mode enablement fee' recently added has been a total departure from this earlier policy of the company, and has renewed the debate.
Customer Reactions and Public Sentiment
The 'veg mode enablement fee' has received widespread reactions from Zomato's user base. Many customers are concerned that it is unfair for such charges, as dietary preferences should not attract a price.
There have been comments and posts flooding social media criticizing Zomato's decision. Some users claimed that the company is exploiting its vegetarian customers, while others questioned the rationale behind the fee. The common sentiment among critics is that vegetarianism is a personal choice and should not be treated as a premium service.
On the other hand, Goyal's prompt response and apology have somewhat eased the criticism. His proactive approach in handling the issue has been appreciated by many customers who appreciate his willingness to listen to feedback and take corrective action.
Broader Implications for Zomato
The 'veg mode enablement fee' row highlights several problems and issues which Zomato has to address in taking on its responsibility as a pioneer food delivery platform. It impacts customers' trust in the company; incidents like these do affect customers' loyalty as well. Apologies from Goyal have tried to reduce the blow, but now it is their responsibility to tackle this issue among the users for a long term.
Transparency: Customers need transparency in the pricing and policies. The non-disclosure prior to the fee introduction by Zomato has been one of the main issues in the debate.
Innovation Versus Affordability: 'Veg mode' is just an example of feature development that catered to a customer's specific requirement. However, this cannot be so unbalanced as to alienate or financially burden users.
Public Perception: As a high-profile brand, the actions of Zomato are closely scrutinized. The company must take into account the potential impact of its policies on public perception.
The Way Forward
Zomato's experience with the 'veg mode enablement fee' is a lesson to businesses operating in the competitive food delivery market. To maintain its position as an industry leader, Zomato must:
Engage with Customers: Actively seek feedback from users to understand their needs and preferences.
Ensure Fair Pricing: Avoid introducing charges that may be perceived as discriminatory or unnecessary.
Clearly Communicate: Be transparent about changes in price or features so as not to confuse customers.
Be Inclusive: Work on creating a product that accommodates all types of diets without limiting accessibility based on money.
The controversy over Zomato's 'veg mode enablement fee' shows the importance of customer-centric policies in the food delivery industry. Though the company's efforts to serve the vegetarian customer base are laudable, the imposition of an additional fee has made it clear that more sensitivity and transparency in policy-making are needed. In addressing customer concerns and learning from this experience, Zomato has a chance to strengthen its relationship with its users and reaffirm its commitment to delivering exceptional service.
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