Mumbai14 minutes ago
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Online food delivery company Zomato has shut down its intercity service Legends. After this news, the company’s stock has gained about 4% today. It is trading at Rs 268, up by Rs 10.
Deepinder Goyal, the company’s owner and CEO, wrote on account X on August 22 – ‘After two years of efforts, as the product has not been able to fit into the market, we have decided to shut down this service with immediate effect.’
Legends service was started in 2022
Intercity Legends has been shut down at a time when Zomato is investing in several other sectors to grow its revenues and strengthen its position in the market.
Intercity Legends was launched in 2022. At that time there was no minimum order limit, but to increase profitability, the company increased the minimum order limit to Rs 5,000. Despite this, the company was not getting any benefit from this project.
This is not the first project that Zomato has shut down after starting. Earlier also the company had shut down its logistics service ‘Extreme’. This service allowed merchants to send and receive small parcels.
Zomato’s profit increased 126.5 times in the April-June quarter
Zomato’s profit has increased 126.5 times year-on-year to Rs 253 crore in the April-June quarter. The company’s consolidated net profit was Rs 2 crore in the same quarter a year ago.
Zomato’s revenue grew 74% to Rs 4,206 crore in the first quarter. The revenue was Rs 2,416 crore in the same quarter a year ago. Zomato released its first quarter results for FY 2024-25 on 1 August.
Plan to build 2,000 stores by the end of 2026
Zomato’s quick commerce business ‘Blinkt’ is growing rapidly. It had 526 stores as of March 31, 2024, which increased to 629 in June. That is, 113 new stores have been opened in the June quarter. Blinkt’s co-founder Albinder Dhindsa said – The company aims to build 2,000 stores by the end of 2026. Most of these stores will be in the top 10 cities of India.
Deepinder founded Foodibay in 2008, then changed its name to Zomato
- Deepinder Goyal and Pankaj Chaddha together launched their food directory website called FoodieBay in the year 2008. In just nine months, FoodieBay became the largest restaurant directory in Delhi NCR.
- After two successful years, the company was renamed as Zomato in 2010. Soon after its success in Delhi-NCR, the company started expanding its branches in cities like Pune, Ahmedabad, Bangalore, Chennai and Hyderabad.
- By 2012, Zomato began expanding overseas, expanding its services to Sri Lanka, the UAE, Qatar, South Africa, the UK, and the Philippines. In 2013, New Zealand, Turkey, and Brazil were added to the list.
- Zomato is the country’s first foodtech unicorn. A startup valued at more than $1 billion is called a unicorn. Zomato first reported a profit of Rs 2 crore in the first quarter of financial year 2024.
- Zomato is a technology platform that connects customers, restaurant partners and delivery partners. Zomato founder Deepinder Goyal bought Blinkit in August 2022 for grocery delivery in addition to food delivery.
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