Zomato has announced the closure of its intercity food delivery service, Legends, due to persistent challenges in finding a product-market fit. The decision, confirmed by Zomato’s CEO, Deepinder Goyal, marks the end of a two-year experiment with the service.
Legends, which had undergone several iterations since its launch, faced significant issues despite multiple changes to its business model. The last version, introduced in 2022, shifted to direct deliveries from restaurants instead of pre-stocked food items. This version also imposed a minimum order value of Rs 5,000, aiming to streamline operations but failing to address core customer needs.
The service was first suspended in April 2023 and briefly relaunched in July. In its earlier iterations, Legends tried delivering pre-stocked items from other cities, but customers’ dissatisfaction with next-day deliveries led to further modifications.
The closure follows a broader trend of Zomato adjusting its business strategies to focus on more successful ventures. Notably, in July 2023, Zomato had also suspended its hyperlocal delivery service, Xtreme, due to poor demand.
Despite these setbacks, Zomato has shown strong financial performance in other areas. For the April-June quarter, the company reported a net profit of Rs 253 crore, a significant increase from the previous year’s Rs 2 crore. This profit boost was driven by growth in its quick-commerce vertical, Blinkit, and its B2B grocery supply unit, Hyperpure. Zomato’s core food delivery business saw a 27% year-on-year increase in gross order value, reaching Rs 9,264 crore, although profitability faced seasonal fluctuations.
The company continues to innovate, having recently launched a standalone app, District, for its dining out, events, and ticketing services. Zomato’s focus remains on refining its offerings to align better with market demands and customer expectations.
