In an X post, Zomato CEO Deepinder Goyal confirmed the company’s decision. He said: “After two years of trying and not finding product-market fit, we have decided to shut down the service with immediate effect.”
The Zomato Legends service allowed customers to order an item from a city far away. For example, this service allowed users to order biryani from a restaurant in Kolkata sitting in Delhi.
After temporarily suspending it in April, Zomato restarted the ‘Intercity Legends’ service last month. The company also increased the minimum order value to Rs 5,000 to make each delivery more profitable than earlier.
Zomato Xtreme hyperlocal goods delivery service shut down in July
In July, Zomato suspended its hyperlocal goods delivery service ‘Xtreme’ which was launched a year ago. With this service, the food delivery platform wanted to compete with intracity small package delivery service providers Shadowfax, Porter and Loadshare. The company also removed the dedicated Xtreme app from the Google Play Store.
This service aimed to leverage Zomato’s existing delivery network to provide intracity package deliveries across nearly all of the 750-800 cities where the company offers food delivery service.
In a statement to The Economic Times, a company executive said that the Xtreme service is being discontinued on account of poor demand.
“It was an experiment…a lot of restaurants do direct delivery and the company’s feedback was that restaurants wanted a similar quality of experience for direct deliveries. That was the basis on which Xtreme was rolled out. But it was always an experiment and could have swung either way,” the company executive noted.