Zomato shuts down intercity Legends offering

Zomato is shutting down its inter-city food delivery service Legends, citing failure to find a product-market fit for the offering, CEO and Founder Deepinder Goyal wrote in a post on X.

"After two years of trying, not finding product-market fit, we have decided to shut down the service with immediate effect," read the post on X.

Zomato launched Legends, nearly two years ago, with the rationale to bring ‘Legendary’ dishes from around the country to users' doorstep. The service was launched and shelved multiple times. Zomato discontinued its intercity delivery service Intercity Legends in April this year after launching it in 2022.

Legends offered selected famous dishes from renowned restaurants across select cities in India, which were frozen and flown, making it a costly affair. In a bid to make it more profitable, the latest update required users to place a minimum order of Rs 5,000. 

The announcement comes a day after Zomato acquired Paytm's entertainment and ticketing business for Rs 2,048 crore as to drive focus on its stepping-out segment.

The foodtech giant is slated to launch its stepping-out app, District, in the next few weeks as it looks to offer booking and ticketing options for movies, sports ticketing, live performances, shopping, and 'staycations', among others.

Although food delivery continues to be Zomato's biggest segment, the company has a renewed focus on quick commerce and stepping out.

Revenue from its food delivery segment grew 41% year-on-year to Rs 1,942 crore while its quick commerce arm Blinkit's revenue more than doubled to Rs 942 crore during Q1 FY25 from Rs 384 crore last year.

Shares of the company closed 0.84% lower at Rs 257.85 apiece. 

(The copy was updated with additional information.)