Zomato, a food delivery platform, has discontinued its intercity food delivery service due to lack of product market fit, Legends, CEO Deepinder Goyal announced.
Taking to X (formerly Twitter), Goyal wrote, “Update on Zomato Legends – after two years of trying, not finding product market fit, we have decided to shut down the service with immediate effect.”
The announcement came just a day after Zomato announced its plans to acquire the movie and events ticketing businesses of Paytm for ₹2,048 crore.
Also read: Paytm To Sell Its Entertainment Ticketing Business To Zomato For Rs 2,048 Crore
Zomato Legends, which debuted in 2022 without a minimum order requirement, faced some challenges that led to its suspension in April 2023. The service made a brief comeback in July 2024 with a Rs 5,000 minimum order value to boost profitability.
Despite these efforts, the initiative eventually turned out to be financially unsustainable for Zomato. The service encountered challenges early on, particularly when Siddharth Jhawar, the then head of the company’s intercity delivery, resigned in November 2022.
When the service was relaunched in July 2024, Zomato took significant steps to ensure its success, including implementing a minimum order value of Rs 5,000. Additionally, the company shifted to delivering pre-stocked food items, rather than fresh deliveries from restaurants, and limited the service to select customers in major cities like Delhi NCR, Bengaluru, and Mumbai.
Last month, Zomato also discontinued its hyperlocal delivery service “Xtreme,” which had been launched in October of the previous year and enabled merchants to send and receive small parcels.
