Online food delivery startup Zomato's announcement of the relaunch of its loyalty program "Zomato Gold" seems to have not sat well with the Indian markets. The stock saw its price crash over 13% to reach Wednesday's intraday low of ₹44.35.
This is the food tech startup’s fourth attempt at launching a loyalty program. The company’s previous attempt “Pro Plus membership” was discontinued last year in August. The new Zomato Gold has been introduced at a pricing of ₹149 for three months.
The Deepinder Goyal-led startup has made several announcements in the past week that have made headlines. Earlier this week, after several media houses reported that the company was shutting down its ambitious 10-min delivery service, Zomato had to come out and state that it is just rebranding the service.
On top of this, Goyal’s hiring post on Linkedin caught the ire of several users, who called the company's mass hiring initiative ironic as it reportedly laid off 3% of its workforce in November last year.
Price Action: Zomato shares traded over 6.5% lower at ₹48.55 in the early hours of trading on Wednesday.
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