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 discontinued in April this year and relaunched in July with a revised model focusing on delivering pre-stocked items from other cities with a shorter delivery time. Post 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 and failing to find a 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 event 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 food and delivery services.
Zomato turns profitable with strong growth
Zomato reported a consolidated net profit of Rs 175 crore for the quarter ended March 31, a significant turnaround from the loss of Rs 189 crore it posted in the same period last year, as per reports. The company’s revenue from operations rose to Rs 3,562 crore in Q4FY24, up from Rs 2,056 crore in the corresponding quarter last year. Additionally, Zomato’s fast commerce business Blinkit posted positive adjusted EBITDA in March FY24. The company also reported 28 per cent growth in gross order value (GOV) of its core food delivery business and a notable 97 per cent increase in Blinkit’s GOV during the quarter.
Cash delivery balance to accounts
Earlier this month, CEO Deepinder Goyal said that Zomato customers can now request that the remaining amount, if any, of cash on delivery orders be added to their “Zomato Money” account and used for placing future orders or eating out. He thanked Tata Group firm BigBasket for the inspiration behind the solution. The online food delivery company announced a significant rise 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.
READ ALSO: Paytm to sell its entertainment ticketing business to Zomato for Rs 2,048 crore | DETAILS
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