Food delivery app Zomato ties up with RBL Bank tie for co-branded credit cards; to offer benefits to customers

FE Bureau
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Zomato on Monday announced a strategic partnership with RBL Bank to launch credit cards.
Cardholders can avail host of benefits every time they use Zomato, the companies said in a joint statement. The cards, which will be available in Edition and Edition Classic variants, will facilitate complimentary Zomato Gold membership and renewal of the programme every year.

While Edition Classic cardholders will get access to the local city variant of the Gold membership, Edition cardholders will get the global membership of the subscription scheme.

Also, Edition cardholders will be eligible for complimentary lounge access at all major domestic airports. Cardholders will also earn Zomato credits on every use. The Gurgaon-based food delivery firm aims to tap into a large untouched customer base through the launch of the Edition credit cards. RBL, which currently has over 2.5 million credit cardholders, will be able to scale up its business in the segment through this initiative.

"We are excited to bring a unique co-branded credit card which rewards cardholders with every transaction - be it on the Zomato app or at a restaurant," said Pradyot Ghate, vice-president, product, payments and partnerships at Zomato.

Zomato claims to have over 1.4 million active Gold users at present. The company said it delivers over 1.2 million food orders on a daily basis. Gold members save over `14,000 in a single meal by availing the programme, the firm said. Zomato that delivers in over 500 cities is locked in an intense competition with Swiggy to grab a bigger pie of the food delivery market. India's food tech market is estimated to touch $7.5-8 billion by 2022 from about $3.5-4 billion in 2019, according to a recent report by Google-BCG (Boston Consulting Group).

Last month, Zomato acquired online taxi aggregator Uber's India food delivery business in an all-stock transaction, which gives Uber 9.99% ownership in the food delivery firm. Zomato, which claims to have reduced its cash burn to $20 million in October 2019 from $45 million in March, received $50 million (`353.58 crore) in fresh\funding from Antfin Singapore Holding in January. The funding is part of the company's larger $150-million financing round by the investor.

The co-branded credit cards powered by Mastercard can also be used by customers to make online and offline purchases.