Zomato Gains After Discontinuing 'Pro', 'Pro Plus' Programmes
Shares of Zomato Ltd. rose nearly 2% and on course to gain for a second day in a row.
Shares of Zomato Ltd. posted their best day in more than a week after the food aggregator discontinued its 'Pro' and 'Pro Plus' programmes for its users, two years after introducing the plans.
In a tweet, Zomato said its Pro Plus service is unavailable for renewal and that the company is working on a new experience.
Zomato Pro members got additional benefits over normal users and gained access to exclusive delivery offers. Most of the orders for Pro members were delivered faster than the normal orders, on an average.
Shares of Zomato rose over 5% intraday and closed with 4% gains, extending the winning streak for the second day.
The stock has underperformed the benchmarks so far this year, losing 53% compared to 2.4% for Sensex. Of the 23 analysts tracking the company, 19 maintain a 'buy', and two each suggest a 'hold' and a 'sell', according to Bloomberg data. The 12-month return potential is 27.5%.