Zomato Legends: 'Market unfit' intercity food delivery service shut down on Aug 22

Zomato Legends, the intercity food delivery service of the restaurant aggregator platform, was shut down on Thursday, August 22. Zomato's food-delivery service will now remain limited within cities.

Zomato's chief executive Deepinder Goyal said on X that the decision to shut 'Legends' will come into force with immediate effect as the product was found not "product fit."

"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," Goyal's post on the microblogging site said.

What was Zomato Legends?

Legends had famously offered iconic dishes from 10 cities to other parts of the country.  Zomato had earlier suspended the service in April, only to relaunch it in July with a few modifications. Zomato changed the model to deliver pre-stocked items from other cities with a shorter delivery timeline. Next-day deliveries did not solve customers’ hunger pangs, the company reportedly told the Economic Times back then. Zomato reverted to delivering directly from restaurants instead of pre-stocked food items, but it has introduced a minimum order value of Rs 5,000 for the service, the report added.

The announcement comes a day after the company said it would acquire the movie and events ticketing businesses of digital payments firm Paytm for $244.2 million.

Food delivery is Zomato's largest business - accounting for 46% of its first-quarter revenue. However, to date, it has not disclosed the contribution of its inter-city service. Zomato's other segments include its quick commerce division Blinkit and business-facing kitchen supplies platform Hyperpure.