Restaurant aggregator and food delivery platform, Zomato, on August 22 announced shutting down its intercity food delivery service Zomato Legends.
In a post on X (formally Twitter), Chief Executive Officer Deepinder 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 service was suspended in April this year and was relaunched in July. In its second avatar, the company tweaked the model to deliver pre-stocked items from other cities with a shorter delivery timeline.
The Legends facility offered iconic dishes from 10 cities to other parts of the country. Following the shut-down, Zomato’s food delivery service will now operate only within cities.
The announcement came a day after Zomato announced on August 21 of its plans to acquire the movie and events ticketing businesses of Paytm for Rs 2,034 crore.
The acquisition, approved by Zomato’s board, will allow the food delivery giant to foray into the entertainment ticketing sector, complementing its existing dining and food delivery services.
Zomato reported a consolidated net profit of Rs 175 crore for the quarter ended on March 31. The Gurugram-based firm had posted 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 came at Rs 3,562 crore as against Rs 2,056 crore in the corresponding period last year.
Zomato also mentioned that its Blinkit (quick commerce) business turned adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) positive in March 2024.
Zomato’s gross order value (GOV) — the total value of all orders placed in its mainstay food delivery business — grew by 28 percent and Blinkit’s GOV soared 97 percent during the quarter.
Last month, Deepinder Goyal, founder and CEO of Zomato, became a billionaire following a record rally in Zomato’s shares over the past year. It may be noted that the stock has increased by over 300 percent since its low in July 2023.
