Zomato shuts down inter-city delivery service Legends due to ‘lack of product-market fit’
Restaurant aggregator and food delivery platform, Zomato, on August 22 announced the shutdown of its inter-city food delivery service Zomato Legends.
In a post on X (formerly Twitter), Chief Executive Officer Deepinder Goyal wrote, “Update on Zomato Legends – After two years of trying, due to lack of product market fit, We have made the decision to stop the service right away.
This year, the service was put on hold in April and then resumed in July. Delivering pre-stocked items from other cities with shorter delivery times was the company’s second avatar.
The Legends feature used to offer iconic dishes from 10 cities in other parts of the country. After the shutdown, Zomato’s food delivery service will now operate only within cities.
The announcement comes a day after Zomato announced plans to acquire Paytm’s movie and event ticketing businesses for Rs 2,034 crore on August 21.
The acquisition, approved by Zomato’s board, will allow the food delivery giant to enter the entertainment ticketing space, complementing its existing dine-in and food delivery services.
Zomato reported a consolidated net profit of Rs 175 crore for the quarter ended March 31. The Gurugram-based firm had reported a loss of Rs 189 crore in the year-ago period.
During the fourth quarter (Q4 FY24), the online food aggregator’s revenue from operations stood at Rs 3,562 crore as against Rs 2,056 crore in the same period last year.
Zomato also reported that its Blinkit (quick commerce) business turned adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) positive in March 2024.
Zomato’s gross order value (GOV) – the total value of all orders placed in its core food delivery business – grew 28 per cent during the quarter and Blinkit’s GOV grew 97 per cent.
