Many people usually order food from Zomato. To expand its service, Zomato had recently launched intercity ‘Legends’ services, which the company has now announced to shut down. The company had launched the inter-city Legends service for people two years ago.
Zomato CEO Deepinder Goyal said on microblogging platform ‘X’, “Update on Zomato Legends – After two years of efforts, after the product did not fit the market, we have decided to shut down the service with immediate effect.” Let us tell you that in July 2024, the company temporarily stopped the service. It was restarted with some changes to make this service more profitable. Zomato Legends introduced famous dishes of 10 cities of the country to other parts of the country. After the closure, Zomato’s food-delivery service will operate only within the cities.
Information received after the deal was done
The announcement comes a day after the food delivery app said it would buy fintech giant Paytm’s movie and event ticketing business for Rs 2,034 crore. The boards of Zomato and Paytm’s parent company One97 Communications have approved the all-cash deal.
Under the agreement, Paytm’s entertainment ticketing business will be transferred to its subsidiaries Orbzen Technologies Private Limited (OTPL) and Westland Entertainment Private Limited (WEPL), followed by the sale of 100 per cent stake in these subsidiaries (which operate the TicketNew and Insider platforms) to Zomato.
Subsequently, Zomato will spin off its new business into a new app called ‘District’. Under the deal, Zomato will fully acquire Orbgen Technologies Private Limited (OTPL), which is into the movie ticketing business, for ₹1,264.6 crore and Westland Entertainment Private Limited, which is into the event ticketing business, for ₹783.8 crore.
While food delivery is Zomato’s biggest business – accounting for 46 per cent of its first quarter revenue – it has not disclosed the contribution of its inter-city service. Zomato’s other segments include its quick commerce division Blinkit and business-oriented kitchen supply platform Hyperpure. It also launched its ticketing business more than a year ago.
