For years, Zomato has had a “charges for price disparity” clause in its contracts, which allowed it to fine restaurants if their eat-in or their own delivery prices were lower than those listed on the Zomato app. Zomato’s contracts also stated that it could use mystery shopping, or secretive restaurant visits, among other tactics to check that outlets were not undercutting the app in price, according to contracts seen by Reuters. The clause was never enforced but has been dropped now, a Zomato source said on Thursday, without explaining the rationale for the decision.For years, Zomato has had a “charges for price disparity” clause in its contracts, which allowed it to fine restaurants if their eat-in or their own delivery prices were lower than those listed on the Zomato app. Zomato’s contracts also stated that it could use mystery shopping, or secretive restaurant visits, among other tactics to check that outlets were not undercutting the app in price, according to contracts seen by Reuters. The clause was never enforced but has been dropped now, a Zomato source said on Thursday, without explaining the rationale for the decision.
Indian food delivery giant Zomato drops pricing clause after pushback, source says
