Zomato has officially shut down its 'Legends' service.
Zomato has officially shut down its 'Legends' service, which was designed to deliver food items even from a city far away. For example, dhoklas from Gujarat were available to customers in Delhi. Despite Zomato's efforts, the lack of "product-market fit" led to the decision to terminate the service.
Zomato Legends was temporarily suspended in April 2024, and it restarted as "Intercity Legends" in July 2024. Zomato even increased the minimum order value to Rs. 5,000 to reach a profitable margin but could not make the service sustainable.
In an announcement on X, Deepinder Goyal, CEO of Zomato, said, “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.”
Mr Goyal's followers on X flooded the comment section, saying the marketing of Zomato Legends failed, leaving the platform with no other option but to take such a drastic step.
“I am hearing about Zomato Legends for the first time today through this post... lol. It shows how bad the marketing and service were,” read a comment.
“I guess it was not marketed well. Not many people know about Zomato Legends,” read another.
“What was the biggest challenge scaling it?” asked a person.
Meanwhile, Vibhor Varshney, a SEBI Registered Research Analyst, explained, “There are many reasons. 1—services were never marketed. 2—who likes stale food like hours-old chole bhature? 3—it was too costly.”
Besides Zomato Legends, the ‘Zomato Xtreme' hyperlocal goods delivery service, launched a year ago, was shut down in July 2024 due to poor demand. With this service, the food delivery platform wanted to compete with Shadowfax, Porter, and Loadshare in providing intracity package deliveries across nearly all of the 750-800 Indian cities but failed to create a space in the existing market scenario.