Zomato Ditches Intercity Legends Amid Strategic Overhaul and New Acquisitions
Zomato has shut down its Intercity Legends service, which delivered famous dishes from 10 different Indian cities to other parts of the country. The service was temporarily paused in July for adjustments aimed at boosting profitability. However, due to the service’s inability to meet financial expectations, Zomato has announced its immediate closure.
Deepinder Goyal, Zomato’s co-founder and CEO, confirmed the shutdown on X (formerly Twitter), explaining that they’ve decided to end the service after two years of trying. This decision is part of its strategy to streamline operations and focus on more profitable ventures, as they believe they’ve found the right market fit.
Intercity Legends launched in 2022 without a minimum order requirement but later introduced a Rs 5,000 minimum order value to improve profits. Despite this, the service failed to meet financial expectations and is discontinued.
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.
— Deepinder Goyal (@deepigoyal) August 22, 2024
This isn’t the first time it has faced challenges and made tough decisions. Previously, they also shut down Xtreme, a logistics service for small parcels, after it didn’t perform as hoped. However, the company has shown resilience and continues to adapt and grow.
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When Intercity Legends was first announced, Zomato was optimistic about its potential. They highlighted the variety of Indian dishes and expressed excitement about the service’s possibilities. However, the company is now focusing on other areas for growth.
On August 21, Zomato announced plans to acquire Paytm’s Entertainment and ticketing business for Rs 2,048 crore in an all-cash deal. This strategic move reflects its commitment to growth and its vision for the future as it expands into the entertainment sector while Paytm shifts its focus back to financial services.
