Zomato Live CEO addresses black marketing concerns around new 'Book Now, Sell Anytime' feature

Zomato, which has been intensifying its focus on the going-out segment after acquiring Paytm Insider for Rs 2,048 crore, has introduced a new feature titled 'Book Now, Sell Anytime.' This feature allows consumers who have purchased event tickets through Zomato to sell their tickets on the platform at a later time.

The new feature is set to launch a few weeks ahead of the highly anticipated Feeding India concert by Zomato, which international pop sensation Dua Lipa will headline. However, the new feature has already sparked concerns regarding potential malpractice, including black marketing and ticket touting, which are longstanding issues in the events industry.

To mitigate these risks, Zomato has implemented specific measures, including a restriction that limits consumers to purchasing a maximum of 10 tickets per category. Additionally, the highest price at which a ticket can be resold on the platform is capped at twice the current phase price of the ticket. For instance, if a customer purchases an Early Bird ticket for Rs 1,000 and the current phase price is Rs 2,000, the customer can list the ticket for resale at any price up to Rs 4,000.

Despite these precautions, concerns remain. With tickets for the Dua Lipa concert starting at Rs 3,500, a consumer could potentially purchase 10 tickets when they go live and later sell them at double the regular price, creating a lucrative opportunity for black marketing. The issue of ticket scalping has plagued major events in the past, including numerous instances during the IPL and the 2023 Cricket World Cup, where law enforcement had to intervene.

During India’s ODI World Cup in 2023, Kolkata Police issued a notice to BookMyShow after a fan alleged that the general public was unable to secure tickets due to alleged collusion between BookMyShow, BCCI, and the Cricket Association of Bengal (CAB).

In response to these concerns, Zeenah Vilcassim, CEO of Zomato Live, was approached to discuss how the platform plans to prevent black marketing and to clarify the intended purpose of this new feature.

Edited Excerpts

Q: The ability to resell tickets at up to twice the original price could potentially lead to users hoarding tickets for premium events and reselling them at significantly higher prices. How does Zomato plan to ensure that this feature is not misused and that it doesn’t result in unfair practices?

We have implemented several safeguards within the Zomato app to prevent misuse and ensure fair practices. First, customers can only purchase a limited number of tickets for each event category, preventing individuals from bulk-buying tickets for resale. 

Second, there is a maximum resale price for tickets, ensuring that customers pay a reasonable price and preventing excessive price gouging. Third, Zomato's team actively monitors the platform for any suspicious activity, such as bulk ticket purchases or unusual pricing patterns. Lastly, all ticket transactions are verified and authenticated by Zomato to prevent fraudulent activities and ensure the legitimacy of tickets. We don’t take any commission from this sale and the full value goes to the customer, subject to applicable taxes. 

Q: Could you clarify who this feature is primarily intended for? Is it designed with a specific audience in mind, such as those looking to make bulk advance bookings for resale purposes?

Our 'Buy Now, Sell Anytime' feature is designed primarily for individuals who want to secure tickets for events in advance but are uncertain about their plans. 

This includes people with fluctuating work schedules, family obligations, or travel arrangements. While the feature could potentially be used for resale purposes, our primary goal is to provide flexibility for genuine customers who may need to change their plans. We believe this feature will benefit both customers and event organisers by increasing ticket sales and reducing the risk of wasted inventory.

Q: Given the potential for this feature to be exploited, with Zomato potentially becoming a platform for black market ticket sales, what motivated Zomato to introduce this feature? How do you plan to address and mitigate any associated risks?

We have introduced the ‘Book Now, Sell Anytime’ feature to provide customers with a more flexible and convenient ticket booking experience. There is a key insight around the anxiety customers face when booking so far in advance for premium tickets and we want to do all that we can to alleviate that friction. 

In addition, we also want to give customers who missed out on buying tickets a stress-free solution to secure tickets to sold out shows. We believe that this feature will benefit both customers and event organizers by increasing ticket sales and reducing the risk of wasted inventory. 

To mitigate the associated risks, we've implemented safeguards such as ticket purchase limits and price caps, and we continuously monitor the platform for any suspicious activity. 

Additionally, we maintain transparency about our policies and procedures to ensure that customers understand how the feature works and the measures we've taken to prevent misuse.