Deepinder Goyal, the founder and CEO of Zomato, announced via social media that the company will be shutting down its Zomato Legends service immediately. This decision comes after two years of efforts to find a viable product-market fit, which ultimately proved unsuccessful.
Zomato Legends, launched with the intent to enhance customer engagement and loyalty, aimed to provide a unique dining experience through exclusive offers and experiences. However, Goyal’s recent update indicates that despite the initial enthusiasm, the service did not resonate with customers as intended, leading to its discontinuation.
Update on Zomato Legends – after two years of trying, not finding product market fit, we have decided to shut down the service with immediate effect.
— Deepinder Goyal (@deepigoyal) August 22, 2024
Zomato has been undergoing significant transformations, including a notable rise in its share prices and the successful performance of its quick commerce arm, Blinkit. Goyal’s leadership has been pivotal in steering the company through these changes, but the closure of Zomato Legends highlights the challenges startups face in finding sustainable business models in a rapidly evolving market.
On 21 Aug, 2024, Zomato announced acquisition of Paytm’s entertainment business for Rs 2,048 crore to support ‘Going-out’ category.
As Zomato pivots away from Legends, the focus will likely shift back to strengthening its primary services and exploring new growth opportunities within the food delivery sector.
