In a strategic pivot, Zomato has announced the immediate shutdown of its intercity food delivery service, “Legends,” citing difficulties in achieving a product-market fit. Chief Executive Officer Deepinder Goyal revealed the decision on August 22, 2024, via a post on the social media platform X.
Launched in August 2022, Zomato Legends aimed to bring culinary delights from ten cities across India directly to consumers’ homes. However, the service encountered significant challenges from the outset. The initial rollout faced operational hurdles, and by November 2022, Siddharth Jhawar, then head of the intercity delivery service, resigned, signaling troubles within the project.
In an attempt to revive the service, Zomato relaunched Legends in July 2024 with new measures, including a minimum order value of Rs 5,000 and a shift to delivering pre-stocked food items rather than directly from restaurants. The service was limited to select cities such as Delhi NCR, Bengaluru, and Mumbai. Despite these efforts, the company struggled to make the service viable.
The discontinuation of Legends follows Zomato’s recent decision to shut down its hyperlocal delivery service, “Xtreme,” which had also failed to meet performance expectations. Launched in October 2023, Xtreme was designed to facilitate the delivery and receipt of small parcels but did not achieve the desired results.
This development comes on the heels of Zomato’s announcement of acquiring Paytm Insider, marking a significant move for the company in diversifying its business interests. The closure of Legends reflects Zomato’s ongoing efforts to streamline its operations and focus on more successful ventures.
As Zomato navigates these changes, the company will likely continue to adapt its strategies to align with market demands and improve its overall service offerings.
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