Food delivery platform Zomato on Thursday announced the discontinuation of its intercity food delivery service ‘Legends.’ The service, which allowed users to order iconic dishes from 10 cities across the country, was initially suspended in April this year and relaunched in July with a revised model focused on delivering pre-stocked items from other cities with a shorter delivery timeline. Following the shutdown, Zomato will continue to operate its food delivery service only within cities.
In a post on X, CEO Deepinder Goyal 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.” The closure of ‘Zomato Legends’ comes a day after the company revealed its plans to acquire Paytm’s movie and events ticketing businesses for Rs 2,034 crore, marking Zomato’s entry into the entertainment ticketing sector. The acquisition, approved by Zomato’s board on August 21, is expected to complement its existing dining and food delivery services.
Zomato swings to profit with strong growth
Zomato reported a consolidated net profit of Rs 175 crore for the quarter ending March 31, a significant turnaround from the Rs 189 crore loss it posted in the same period last year, as per reports. The company’s revenue from operations surged to Rs 3,562 crore in Q4 FY24, up from Rs 2,056 crore in the corresponding quarter of the previous year. Additionally, Zomato’s quick commerce business, Blinkit, turned adjusted EBITDA positive in March 2024. The company also reported a 28 per cent growth in the gross order value (GOV) of its mainstay food delivery business and a remarkable 97 per cent increase in Blinkit’s GOV during the quarter.
Cash delivery balance to accounts
Earlier this month, CEO Deepinder Goyal said Zomato customers can now ask for the balance amount, if any, of cash on delivery orders to be added to their ‘Zomato Money’ account, and utilise it for placing future orders or dining out. He thanked Tata Group firm BigBasket for the inspiration behind the solution. The online food delivery firm announced a significant increase in its consolidated net profit last week, reaching Rs 253 crore for the quarter ended June 2024, from Rs 2 crore during the same period last year.
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