A rewards point-based program for users of Zomato’s food delivery service, PiggyBank is akin to a cashback system with 10% of the order value being credited back into a user’s account as Z Coins each time they use the app to order food online. These coins can be redeemed on future purchases, with a limit of upto 10% of the order value each time on redemption.
Currently the Piggybank program is available on a loyalty-based access to about 10,000 customers and will be extended to users who order over 5 times per month from Zomato, thus enhancing stickiness for its user base. The program however will enable early access for Piggybank to existing Zomato Gold users.
Having begun as a loyalty based program, Piggybank will become a fee-based subscription service from September, with users being able to avail the program at Rs 299 for one year.
Zomato Piggybank is the latest amongst a slew of offerings that Zomato has been building to ensure customer stickiness with PiggyBank directly impacting its food ordering business. Food delivery has been the biggest battle for Zomato where it competes with Bengaluru-based Swiggy, Ola-backed Foodpanda and UberEats.
While Swiggy leads the online delivery space with about 14 million monthly orders, Zomato currently clocks about 10.5 million monthly orders across India and UAE. Both Foodpanda and UberEats clock about 1.2 million and about 1 million monthly orders as per industry estimates.
For Zomato, its subscription program Gold formed about 12% of its revenues in less than 6 months of its launch with over 160,000 subscribers at the end of March 2018. The program has given Zomato an upper hand on customer stickiness which it is looking to emulate with PiggyBank.
PiggyBank will help build revenue muscle for the food delivery vertical which contributed about 30% of Zomato’s revenues in FY18. Zomato clocked a 45% increase in revenues in FY18 to $74 million (about Rs 481 crore then) buoyed by a steady rise in its food delivery and subscription based program Gold.
