Zomato‘s share price was back in the green looking to halt its two-session losing streak on Friday.
What Happened: On Thursday, Zomato said it would immediately shutdown its Intercity Legends service, which offered iconic dishes from 10 cities across India to customers nationwide.
The company’s CEO Deepinder Goyal, confirmed the closure on social media platform X (formerly Twitter), stating that after two years of trying, the company could not achieve the desired product-market fit.
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Launched in 2022, the service initially did not have a minimum order threshold but later introduced a ₹5,000 minimum order value in an attempt to enhance profitability. Despite these changes, the project failed to meet financial viability.
This discontinuation is part of a broader pattern for Zomato, which has shut down other services like Xtreme, a logistics platform after they failed to meet expectations.
The closure of Intercity Legends comes as Zomato continues to diversify into other sectors to boost revenue and solidify its market position. This week, Zomato acquired Paytm‘s entertainment and ticketing business for ₹2,048 crore in an all-cash deal as part of Zomato’s strategy to expand into the ‘going-out’ segment, while Paytm aims to concentrate on its core financial services.
Price Action: Zomato’s share price was up 1.58% to trade at ₹262.03 as the markets opened on Friday.
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