Zomato has announced the immediate shutdown of Intercity Legends, a service that offered iconic dishes from 10 cities across India.
The company paused the service in July and made changes to make orders more profitable. However, after two years of trying, they have decided to shut down the service. Deepinder Goyal, co-founder and group CEO of Zomato, confirmed the closure in a tweet.
Deepinder Goyal wrote on X, "After two years of trying and not finding product-market fit (PMF), we have decided to shut down the service with immediate effect."
This is yet another service that Zomato has discontinued after discontinuing Xtreme. It was a logistics service that allowed merchants to send and receive small parcels as it did not give desired results.
Zomato diversifies into other sectors. Initially launched in 2022 without a minimum order threshold, it later introduced a Rs 5,000 minimum order value. However, the project did not make financial sense to Zomato.
However, the company had high hopes for the intercity service, said Goyal, "The sky is the limit to how big Intercity Legends can become."
He added, "So sit back and enjoy a legendary meal. After all, it takes a legend to know a legend!"
Astonishingly, online users have pointed out its positive impact on the company in the share market.
A user wrote, "Zomato's share price climbs 3.4% as it shuts down its Intercity Legends services and the share price is rising likely to the acquisition of Paytm’s entertainment ticket business for worth ₹2,048 crores yesterday."
Social Media Reaction:
Online users had mixed reactions to Zomato ending its 2-year-old intercity food delivery service.
One user wrote, "Zomato intercity legend is just like the best friend who tried for 2 years to fit onto his girls life but at the end"
Another user commented, "I did google on Zomato Legend, then came to know it was a project of intercity food. Sounds interesting."