Published on October 20th, 2015 | by Bhavishya Kanjhan0
Zomato sunsets Cashless service after trial in Dubai
In a blog post, CEO Deepinder Goyal has announced the Zomato is shutting down Cashless after a trial period of less than a year. The service, which allowed customers to pay their bills at participating restaurants via the Zomato app, went live in Dubai in December last year. We took the service for a spin and came out with a mostly positive experience.
Goyal cites several reasons for his decision. The first is Cashless not being part of the natural flow of a user. He writes “we needed a user to think about the payment at a restaurant before the start of the meal, whereas they are accustomed to thinking about the payment only at the end of the meal.” Secondly, the cost of acquisition, which include components of hardware provided and training of restaurant staff, which suffers from high attrition, was high and “the unit economics were just not going to work.”
Cashless is only one of Zomato’s attempts to further integrate vertically in the food and restaurant market. Zomato’s Base and Book, Point of Sale and Table Management software respectively, is likely to bring back some of the Cashless functionality in the future.
Until then, we’ll go back to paying with our cash and cards.