Zomato Shuts Intercity Offering ‘Legends’

SUMMARY

Zomato CEO Deepinder Goyal said that despite trying for two years, the company failed to find the product market fit for Legends

Last month, Zomato relaunched the offering in Delhi NCR and Bengaluru. The company had suspended the service in April this year

Zomato launched ‘Intercity Legends’ in August 2022 to deliver popular dishes from cities across India to different regions

Just a month after it relaunched intercity food delivery service ‘Zomato Legends’, the foodtech giant’s founder and CEO Deepinder Goyal said that the service has been discontinued.

“After two years of trying, not finding product market fit, we have decided to shut down the service (Zomato Legends) with immediate effect,” Goyal said in a post on X.

In July, it was reported that the service was relaunched in Delhi NCR and Bengaluru, and the company had plans to expand to other cities as well. It is pertinent to note that the service was suspended by Zomato in April this year in a bid to streamline and consolidate its operations.

Zomato launched ‘Intercity Legends’ in August 2022 to deliver popular dishes from cities across India to different regions.

A year later, it tweaked the model to deliver pre-stocked items from other cities within a shorter delivery timeline.

The move to shut Legends is in line with Zomato’s strategy to experiment with new offerings, particularly for the food delivery vertical, and shut those which are not getting enough traction.

Zomato has launched a number of new services and offerings in the ongoing calendar year. In April, it launched a ‘large order fleet’ to deliver large orders for up to 50 people. Later, it expanded its home-cooked meal service ‘Zomato Everyday’, and is also piloting priority deliveries in Bengaluru and last mile deliveries for office goers. Besides, it also rolled out a partner restaurant focused initiative ‘Restaurant Services Hub‘ earlier in June.

Meanwhile, it suspended its logistics business ‘Xtreme’ last month.

Besides its food deliveries business and rapidly growing quick commerce vertical Blinkit, the company is now focusing on scaling up its third B2C business vertical, Going Out. It is currently planning to spin off this vertical into a separate app District, which is expected to be unveiled in the coming weeks.

To bolster its entertainment ticketing business, the company is acquiring Paytm’s entertainment and ticketing business for INR 2,048 Cr in an all-cash deal.

The company will be following the strategy it adopted with Blinkit, wherein eventually the Zomato app would just have a button to launch the District app.