Mumbai4 days ago
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Online food delivery company Zomato has shut down its intercity service Legends. The company’s owner and CEO Deepinder Goyal has given this information on his X account on Thursday (22 August).
Dipinder wrote on his X handle, ‘Update on Zomato Legends – After two years of efforts, having failed to achieve product market fit, we have decided to discontinue this service with immediate effect.’
Legends service was started in 2022
Intercity Legends has been shut down at a time when Zomato is investing in several other sectors to grow its revenues and strengthen its position in the market.
Intercity Legends was launched in 2022. At that time there was no minimum order limit, but to increase profitability, the company increased the minimum order limit to Rs 5,000. Despite this, the company was not getting any benefit from this project.
This is not the first project that Zomato has shut down after starting. Earlier also the company had shut down its logistics service ‘Extreme’. This service allowed merchants to send and receive small parcels.
Zomato had announced the launch of the new ‘District’ app
Earlier this month, Zomato announced the launch of a new app called ‘District’. This app combines the ‘going-out’ business with dining and ticketing (movies and events). This app is a major expansion beyond the company’s core food delivery services and hyper commerce.
Zomato stock rose 107.11% this year
Zomato’s stock closed at Rs 257.85 today (Thursday, 22 August) with a decline of 0.84%. The company’s stock has given a return of 16.33% in the last one month, 59.07% in 6 months and 180.58% in one year. At the same time, this year i.e. from January 1, 2024 till now, Zomato’s stock has climbed 107.11%.
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Zomato will buy Paytm’s entertainment and ticketing business: Deal will be done for Rs 2,048 crore, approved by the boards of both companies
On Wednesday, Zomato announced the acquisition of Paytm’s entertainment and ticketing business. The deal is to be done for Rs 2,048.4 crore. This giant company of the food delivery sector wants to expand its position in the ‘going-out’ segment.
At the same time, troubled fintech major Paytm wants to focus on its core financial services offering. Both the companies said in exchange filings that cash transactions have been approved by the boards of Zomato and Paytm on August 21 (Wednesday).
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