India's Zomato shuts inter-city food-delivery service

BENGALURU (Reuters) - India's Zomato is shutting down its inter-city food-delivery service, CEO Deepinder Goyal said in a social media post on Thursday.

The service, launched in 2022 and named Intercity Legends, allowed users in India to order food from other cities.

"After two years of trying, not finding product market fit, we have decided to shut down the service," Goyal said in a post on X.

The announcement comes a day after the company said it would acquire the movie and events ticketing businesses of digital payments firm Paytm for $244.2 million.

Although food-delivery is Zomato's largest business - accounting for 46% of its first-quarter revenue - it has not disclosed the contribution of its inter-city service.

Following the shut-down, Zomato's food-delivery service will operate only within cities.

Zomato's other segments include its quick commerce division Blinkit and business-facing kitchen supplies platform Hyperpure. It also began operating its ticketing business more than a year ago.

(Reporting by Varun Hebbalalu in Bengaluru; Editing by Anil D'Silva)