SUMMARY
- Zomato plans to relaunch its logistics service Xtreme with a revised focus on food delivery support.
- Xtreme, first launched in October 2023, was suspended in July 2024 due to weak demand.
- Zomato continues experimenting with new verticals, including logistics, while rapidly pulling back underperforming services.
Foodtech giant Zomato is reportedly preparing to relaunch its logistics service Xtreme, months after suspending it due to weak demand. The company is said to be recalibrating Xtreme’s focus to better align with Zomato’s core strength in food delivery. This restructured service aims to cater to restaurants seeking quality last-mile delivery for their independent channels.
Originally launched in October 2023, Xtreme targeted quick parcel delivery for merchants. However, by July 2024, the service was shelved due to insufficient demand, and the app was removed from the Google Play Store. Existing users received notifications that their areas were no longer serviceable. According to reports, this relaunch remains an experiment, and Zomato is yet to determine if the service will scale significantly.
This isn’t the first time Zomato has retracted an offering. In July 2024, it attempted to relaunch its intercity delivery business Legends, which was also discontinued after just a month. Zomato’s ongoing strategy involves experimenting with new business models across logistics, large-order fleets, and entertainment, while quickly pulling back those that fail to gain traction.
Notably, in August 2024, Zomato acquired Wasteland Entertainment and Orbgen Technologies, the event and ticketing subsidiaries of Paytm, for INR 2,048 Cr in an all-cash deal, further diversifying its portfolio.
