Zomato Pulls the Plug on Intercity Legends: What Went Wrong?

Is Zomato’s once-celebrated “Intercity Legends” service becoming just another chapter in the food delivery giant’s turbulent journey? With the sudden announcement of its shutdown, many are left wondering—what exactly was this service, and why did it fail? Was it doomed from the start due to controversies and financial pressures, or did other factors seal its fate?

Zomato Intercity Legends

Zomato’s Intercity Legends service was launched with much fanfare as an ambitious attempt to bring iconic dishes from different cities to customers nationwide. Imagine savoring Kolkata’s famous biryani or Hyderabad’s signature haleem from the comfort of your home, regardless of your location. This service was positioned as a way to cater to the cravings of Indians who longed for regional flavors that were previously out of reach.

Zomato introduced its intercity food delivery service in August 2022, allowing customers to enjoy delicacies from ten different cities across India from the comfort of their homes. However, the service encountered challenges early on, with Siddharth Jhawar, the head of intercity delivery, resigning in November 2022. By April 2023, Zomato quietly discontinued the service, but relaunched it in July later that year.

Controversies Around Zomato's Intercity Legends

After its launch, in September 2022, Zomato announced plans to expand its Intercity Legends service, aiming to bring popular dishes from top cities to more customers across India. Siddharth Jhawar, then head of Intercity Legends, expressed confidence in the expansion, stating that the company planned to extend the service to all major cities within three months. However, the service faced significant challenges soon after. In November 2022, Jhawar resigned from his position, and Kamayani Sadhwani from Blinkit took over the leadership of Intercity Legends.

The service's original model, which delivered food the next day, did not meet customer expectations, prompting Zomato to revise its approach by pre-stocking popular items for faster delivery. Despite these efforts, the new strategy didn’t resonate with customers. In February 2023, a Gurgaon resident filed a legal complaint, accusing Zomato of misleading consumers with claims of delivering hot food under the 'Dilli ke Legends' sub-category. This controversy, coupled with a lack of customer traction, led Zomato to suspend the Legends service in April 2023.

Zomato's Legends: A Revamped Attempt Falls Short

In July this year, Zomato relaunched its Legends service with a revised approach, moving away from pre-stocked meals to delivering food directly from restaurants. The new model, which required a minimum order value of Rs 5,000, initially launched in Delhi and Bengaluru with plans for further expansion. Despite these changes, the service failed to gain traction and ultimately did not succeed.

Why Did Zomato Shut Down Intercity Legends?

Zomato’s decision to pull the plug on Legends doesn’t come as much of a surprise as the company has previously shuttered several new services and projects it experimented with. “After two years of trying, not finding product-market fit, we have decided to shut down the service (Zomato Legends) with immediate effect,” Goyal wrote in a post on X. Through Zomato Legends, customers used to order the best-known dishes from famous restaurants located in other cities.

What’s Next for Zomato?

As Zomato continues to recalibrate its business strategy, the shutdown of Intercity Legends serves as a stark reminder of the challenges faced by tech companies in balancing innovation with sustainability. While the service’s closure marks the end of a unique experiment, it also opens the door for Zomato to explore new opportunities that align better with its long-term goals.

Zomato continues to push boundaries with its latest ventures, including the expansion of its ‘Zomato Everyday’ service to Mumbai, offering home-cooked meals at competitive prices. Additionally, the company introduced a 'large order fleet' in April, designed for group catering with all-electric vehicles to efficiently handle large events. In August, Zomato rolled out a group ordering feature to simplify collective purchases, mirroring similar updates from competitors like Swiggy.

Looking ahead, Zomato is shifting focus to enhance its 'going-out business' with the acquisition of Paytm’s movie ticketing and events platform for Rs 2,048 crore. The company plans to promote its new 'District' app, which will enable customers to make restaurant reservations and book tickets for movies, music concerts, sports events, and more. Despite its impressive financial results and market capitalization, Zomato must navigate fierce competition and evolving consumer preferences to maintain its growth and leverage these new opportunities effectively.