Zomato's attempt to deliver iconic dishes from 10 cities to other parts of the country has come to an end. The restaurant aggregator platform has shut down its intercity food delivery service, Legends. After two years of trying, the service was found not to be "product fit" and was not able to solve customers' hunger pangs. This decision comes after Zomato's recent acquisition of the movie and events ticketing businesses of digital payments firm Paytm for $244.2 million.
Zomato Legends: A Failed Attempt to Deliver Iconic Dishes Nationwide
Background:
In 2020, Zomato launched Legends, an intercity food delivery service that aimed to bring iconic dishes from 10 major Indian cities to the rest of the country. The service initially offered delicacies from Mumbai, Delhi, Bengaluru, Hyderabad, Kolkata, Lucknow, Jaipur, Chennai, Goa, and Kochi.
Reason for Shutdown:
After two years of operation, Zomato has decided to shut down Legends due to poor performance. According to the company, the service "failed to achieve product fit" and was unable to meet customers' expectations. The aggregator platform cited challenges with logistics, inventory management, and maintaining food quality during long-distance deliveries.
Impact:
The shutdown of Legends marks the end of Zomato's ambitious plan to expand its reach beyond food delivery in its core cities. The company's acquisition of Paytm's movie and events ticketing businesses in August 2022 suggests a shift in focus toward other verticals.
Top 5 FAQs and Answers
FAQ 1: Why did Zomato shut down Legends?
Answer: Zomato cited poor product fit and inability to meet customers' hunger pangs as the reasons for the shutdown.
FAQ 2: How did Legends perform during its two-year operation?
Answer: Legends struggled to gain traction due to logistical challenges, inventory management issues, and maintaining food quality during long-distance deliveries.
FAQ 3: What will happen to the restaurants that were part of Legends?
Answer: Zomato has stated that it will continue to partner with the restaurants that were part of Legends through its regular food delivery services.
FAQ 4: What is the future of intercity food delivery in India?
Answer: The shutdown of Legends highlights the challenges of intercity food delivery in India. It remains to be seen whether other companies will pursue similar ventures in the future.
FAQ 5: What is Zomato's focus after the shutdown of Legends?
Answer: Zomato's acquisition of Paytm's movie and events ticketing businesses indicates a shift in focus toward diversifying its offerings beyond food delivery.
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