Zomato Shuts Down its Intercity ‘Legends’ Service

Online food delivery platform Zomato announced on Thursday, August 22, that it would be discontinuing its intercity food delivery service, ‘Legends,‘ effective immediately. This decision comes after two years of unsuccessful attempts to find a profitable product-market fit for the service.

Zomato’s CEO, Deepinder Goyal, took to social media to share the news, stating that despite temporary pauses and modifications to the service, it had failed to achieve the desired level of profitability. ‘Legends’ offered iconic dishes from ten cities across India to customers in other parts of the country. Following its closure, Zomato’s food delivery service will be limited to intracity operations.

This announcement comes just a day after Zomato revealed its plans to acquire the movie and events ticketing businesses of Paytm for a substantial sum of Rs. 2,034 crore. Both companies’ boards of directors have approved this all-cash deal.

As part of the agreement, Paytm’s entertainment ticketing business will be transferred to its subsidiaries, Orbgen Technologies Pvt Ltd and Wasteland Entertainment Pvt Ltd. Subsequently, Zomato will acquire a 100% stake in these subsidiaries, which operate the TicketNew and Insider platforms.

While food delivery remains Zomato’s primary business, accounting for 46% of its first-quarter revenue, the company has not disclosed the specific financial impact of its intercity service. Other segments of Zomato’s operations include the quick commerce division Blinkit, the business-facing kitchen supplies platform Hyperpure, and its recently launched ticketing business.