Zomato discontinues ‘Zomato Legends’ intercity service after two years of struggles

In a surprising move, Zomato has officially pulled the plug on its intercity food delivery service, ‘Zomato Legends,’ effective August 22, 2024. This decision comes after two years of attempts to find a viable market fit, which ultimately proved unsuccessful despite various strategic adjustments.

Launched in August 2022, Zomato Legends was designed to offer consumers the unique ability to order iconic dishes from renowned restaurants in cities far from their own. The service initially generated considerable buzz, promising food enthusiasts a chance to savor delicacies from different parts of India without the need to travel. However, the concept struggled to gain traction among customers, leading to its eventual downfall.

From its inception, Zomato Legends faced multiple challenges. Notably, key personnel like Siddharth Jhawar, who led the initiative, left the company shortly after the service’s launch, signaling potential internal issues. By April 2023, Zomato quietly paused the service before attempting a relaunch in July 2024 with changes such as a minimum order value of ₹5,000 and limiting the service to select cities like Delhi NCR, Bengaluru, and Mumbai. However, these efforts were not enough to salvage the service.

Zomato shuts down its intercity Legends service after two years due to market fit challenges. Discover what led to this decision.

The discontinuation of Zomato Legends reflects the broader challenges faced by the foodtech industry in India, where innovation and customer expectations often clash with the harsh realities of operational sustainability. Zomato’s CEO, Deepinder Goyal, acknowledged the difficulties in a social media post, stating that despite two years of trying, the service simply did not align with market demands.

This move comes on the heels of Zomato’s recent acquisition of Paytm Insider for ₹2,048 crore, a strategic pivot that suggests the company is refocusing its efforts on strengthening its core offerings and exploring new growth avenues within the food delivery sector. The closure of Legends also follows the recent discontinuation of another Zomato service, ‘Xtreme,’ which provided hyperlocal delivery solutions but failed to meet expectations.

While Zomato Legends’ closure might seem like a setback, it underscores the company’s adaptive strategy in a highly competitive market. By phasing out underperforming ventures, Zomato is likely aiming to streamline its operations and direct resources toward more profitable initiatives, such as its rapidly growing quick commerce segment through Blinkit.

As Zomato continues to evolve, the lessons learned from the Legends experience will undoubtedly inform its future endeavors, particularly as the company navigates the complex landscape of India’s dynamic food delivery industry.

The closure of Zomato Legends marks the end of an ambitious attempt to redefine food delivery in India. Launched in August 2022, Zomato Legends aimed to bring iconic dishes from various Indian cities directly to consumers’ doorsteps, offering a unique culinary experience. However, despite multiple relaunch efforts and strategic changes, the service struggled to resonate with customers.

Zomato CEO Deepinder Goyal announced the immediate shutdown of the service, citing the inability to find a sustainable market fit. The closure follows the discontinuation of Zomato’s hyperlocal delivery service, Xtreme, and a recent acquisition of Paytm Insider, signaling a shift in focus toward strengthening core operations and exploring new growth avenues.

This decision reflects the broader challenges faced by the foodtech industry in India, where customer expectations often clash with operational realities. As Zomato pivots away from Legends, it underscores the company’s adaptive strategy in navigating a rapidly evolving market landscape​.