Zomato Ends Intercity Legends Service Due to Market Fit Issues

Zomato has announced that it will shut down the Intercity Legends service with immediate effect. The service allowed customers to order some iconic dishes in 10 cities across India and have them delivered to other parts of the country. Deepinder Goyal, chief executive officer of the online food delivery giant, explained on X that it was due to the lack of product-market fit.

“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,” he wrote.

Zomato Legends was introduced in 2022. It had no minimum order value initially. It was put on hold in April and briefly revived in July with changes that were in place to make it more profitable. It introduced a minimum order value of Rs 5,000 to be more viable. It seems the project was still not viable for Zomato even with such changes.

When Intercity launched, it had written in a blog, “A jewel hides in every nook and corner of India. With over a 100 airports and a rich spread of the most iconic dishes that India has to offer, the sky is the limit to how big Intercity Legends can become.”

Intercity Legends has been closed by Zomato as the firm looks toward diversification into other ancillary industries to drive revenue and build market muscle. The development came just a day after Zomato announced its intention to acquire the movie and events ticketing businesses of fintech giant Paytm for ₹2,034 crore.

This is just another service that Zomato has shut down after ending previous pilot projects. The Gurugram-based company earlier pulled the plug on Xtreme, a hyperlocal logistics service that enabled merchants to send and receive small parcels, as it failed to give expected results.

In January 2023, Zomato pulled the plug on Instant, its 10-minute delivery service, a year after it piloted in Bengaluru, Gurugram and some areas of Delhi.