Zomato Legends No More: Intercity Delivery Shut Down A Day After Rs 2,048-Cr Paytm Ticketing Acquisition Announcement

Zomato Legends was launched in 2022, allowing customers to order popular dishes from 10 cities across the country.

This move comes as Zomato shifts its focus toward expanding into new areas to boost revenue and strengthen its market position.

Source : Zomato

Zomato Legends: Zomato has officially ceased operations of its Intercity Legends service, which previously allowed customers to order iconic dishes from 10 cities across India and have them delivered nationwide. The shutdown follows an earlier pause in the service, which was briefly revived in July with modifications aimed at improving profitability. The news comes a day after Zomato approved the Rs 2,048-crore acquisition of Paytm's ticketing and entertainment business.

The decision to discontinue Intercity Legends was confirmed by Zomato’s co-founder and CEO, Deepinder Goyal, in a post on X (formerly Twitter). This is what Goyal tweeted:

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.

— Deepinder Goyal (@deepigoyal) August 22, 2024

What Is Zomato Legends?

Intercity Legends, which was launched in 2022, initially had no minimum order value but later introduced a Rs 5,000 threshold in an attempt to make the service financially viable. Despite these efforts, the service failed to meet Zomato’s profitability goals, leading to its closure.

Flavorful Biryani straight from Hyderabad! 💙 Love the new initiative from @zomato! If you're on the fence about ordering from Intercity Legends, I'd suggest to give it a try. The food is quite fresh and enjoyable. pic.twitter.com/MYeZcPivHo

— Sai Krishna (@ks_krishna17) August 30, 2022

This move comes as Zomato shifts its focus toward expanding into new areas to boost revenue and strengthen its market position. The company has previously discontinued other services, such as Xtreme, a logistics initiative aimed at helping merchants send and receive small parcels, due to underwhelming performance.

In a related development, Zomato has announced its acquisition of Paytm's ticketing and entertainment division for Rs 2,048 crore. The acquisition, approved by the boards of both companies on August 21, marks a significant step in Zomato’s efforts to expand beyond its core food delivery business. The deal is expected to enhance Zomato’s presence in the 'going-out' segment, encompassing activities such as dining, movies, and live events.

Although Paytm will continue to offer ticketing and entertainment services for another year, customers will soon be encouraged to transition to Zomato’s upcoming app, 'District.' The new app, which is set to launch in the coming weeks, will integrate various lifestyle services into a single platform, further diversifying Zomato’s offerings.