If you are as frequent a Zomato user as I am, you’d notice how every time you order something via the app, it sends something called ‘Z Coins’ to your ‘Piggybank’. Well, that is Zomato’s rewards program and it is now drawing a close. Reasons are uncertain, but it is likely that the traction wasn’t enough and the spends on such a program were high.
In a statement issued to the press, Zomato says, “A massive upgrade to our loyalty programme is in the works. We have therefore decided to discontinue Piggybank. Subscribers will be able to use their Z coins till 12th August.”
In an emailed statement to its users, Zomato has talked about the rewards program shutting down. The email says, “We thank you for being an inseparable part of the Piggybank journey, which will come to a close on August 12th. You can keep using your balance coins till then to get 10% OFF from select partner restaurants. After that, your remaining coin balance will expire”
The shutting down is rather intriguing. The company had claimed, not just too long ago, that more than one million users have subscribed to Piggybank, with 30% of subscribers coming through referrals. The company also claimed that over 2 million orders were being placed using Z coins and had stated plans to convert it into a paid subscription programme at Rs 299 per year. However, we have not seen that paid plan coming into action.
While Piggyback may be shutting down, Zomato’s ‘Zomato Gold’ membership is flourishing, and is expanding at a rapid pace. It has turned out to be a real success for the company, which now expects the premium membership program to contribute $20-$25 Million to revenue by the end of 2019.