Zomato has announced the immediate shutdown of Intercity Legends, as it could not find product market fit, Chief Executive Officer Deepinder Goyal said on Thursday.
Intercity Legends offered iconic dishes from 10 cities across India to other parts of the country. The service has been discontinued after the company temporarily paused the service and restarted with a few tweaks, to make orders more profitable, in July.
Deepinder Goyal, co-founder and CEO of Zomato, confirmed the shutdown via a tweet on X, explaining, “After two years of trying and not finding product-market fit, we have decided to shut down the service with immediate effect.”
Zomato share price gained over 4% on Friday after the company announced to shut down its Intercity Legends services. Zomato shares rose as much as 4.63% to ₹269.90 apiece on the NSE. At the day’s end, Zomato’s share price closed at ₹262.65 with a 1.81% gain.
Zomato launched its intercity food delivery service, Intercity Legends in August 2022. By April 2024, Zomato temporarily suspended Legends, before relaunching it in July this year.
To ensure the service succeeded this time around, Zomato reverted to delivering directly from restaurants instead of pre-stocked food items but introduced a minimum order value of Rs 5,000 for the service. It also delivered pre-stocked food items, instead of delivering right from restaurants, to only select customers in Delhi NCR, Bengaluru, Mumbai, and other major cities.
Earlier in July, Zomato also suspended its hyperlocal goods delivery service ‘Xtreme’ on account of poor demand. The food delivery platform launched the service in October last year.
The announcement comes one day after Zomato announced the acquisition of PayTM’s ticketing business in a ₹2,048 crore deal.
