Zomato announced shutting down of its intercity Legends, a service that transported famous Indian delicacies from 10 towns throughout the nation.

Previously, the food delivery giant temporarily halted the service in July and relaunched it with some changes to increase order profitability, but the service has now been canceled.

The move to close its Intercity Legends is believed to be in response to Zomato's efforts to expand into other related industries in an effort to strengthen its position in the market and increase income.

When Intercity Legends was launched in 2022, it was said that there was no minimum order amount.

Therefore, the food delivery giant added a minimum order value of Rs.5000 to increase profitability.

Still, Zomato could not see any financial benefit to the project.

Deepinder Goyal, co-founder and group CEO of Zomato, confirmed the closure in a tweet on X, stating, "After two years of trying and not finding product-market fit (PMF), we have decided to shut down the service with immediate effect."

Following previous pilots, Zomato terminated Xtreme, a logistics service that let retailers deliver and receive small packages due to unsatisfactory outcomes.

Currently, the food delivery giant is investing resources and time in other divisions in the interim.

As Zomato strives to expand its reach into the 'going-out' category and Paytm tries to concentrate on its core financial services products, the two companies announced on August 21 that Zomato will buy Paytm's entertainment and ticketing company for Rs 2,048 crore in an all-cash deal.

The service's third avatar was the most recent iteration, which debuted in 2022. Here, Zomato went back to delivering straight from restaurants rather than stocking food goods, but they now charge Rs 5,000 for the service.

The business modified the model in its second iteration so that pre-stocked things could be delivered faster from other cities.

Zomato recorded a net profit of Rs 253 crore for the April-June quarter, up from Rs 2 crore in the same period last year, despite a 74 percent increase in operating revenue to Rs 4,206 crore.

The company's quick-commerce vertical Blinkit and its business-to-business (b2B) groceries supply segment Hyperpure were the main drivers of its first-quarter sales growth.