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Zomato Shuts Down Intercity Food Delivery Service Zomato Legends

The company recently acquired Paytm’s movie ticketing and event business in a deal worth Rs 2,048 crore

Zomato Shuts Down Intercity Food Delivery Service Zomato Legends
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Food delivery Platform Zomato has closed down its intercity food delivery service, Zomato Legends. The announcement was made by its chief executive, Deepinder Goyal on X.

Zomato Legends was launched in 2022 to offer food services across 10 cities in India. However, it has had difficulties since its launch. The intercity app delivered food directly from restaurants with a minimum order value of Rs 5000.

It was suspended in April this year only to be relaunched in July with certain modifications to deliver pre-stocked items from other cities within a shorter delivery time.

In November 2022, Siddharth Jhawar, Zomato’s vice president, who was leading Zomato Legends quit the firm. He went to head the India operation of the learning-based advertising tech platform MOLOCCO backed by India operations of Tiger Global.

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Zomato also had suspended its hyperlocal goods delivery service ‘Xtreme’ because of poor demand. It was launched in October last year and allowed merchants to receive and send small parcels.

The shutdown of Zomato Legends comes when the company recently acquired Paytm’s movie ticketing and event business in a deal worth Rs 2,048 crore.

This was part of Zomato’s initiative to expand its business to the ‘going out’ segment. With this move, Zomato will offer a wide range of lifestyle services including dining out, sports ticketing, live performances, shopping and more within the ambit of a single platform.

It has also announced a standalone app, District, for its going-out business. It includes dining out, events and ticketing.

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In Q1 of FY25, Zomato achieved a profit of Rs 253 crore up from Rs 175 crore a quarter ago. In the corresponding period last year, the company turned profitable for the first time gaining Rs 2 crore.

Zomato’s revenue from operations rose 74 per cent year-on-year (Y-o-Y) to Rs 4,206 crore in Q1FY25, up from Rs 2,416 crore a year ago.

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