Gurgaon-based food delivery platform Zomato has suspended its hyperlocal goods delivery service ‘Xtreme’ due to low demand, sources reveal. Launched in October last year, the service aimed to deliver small packages intracity, leveraging Zomato’s extensive delivery fleet across nearly 800 cities.
Despite its initial rollout, ‘Xtreme’ failed to gain significant traction among users. The company has since removed the Xtreme app from Google Play Store. “It was an experiment to provide restaurants with a similar quality of experience for direct deliveries, but it was always a trial that could have gone either way,” commented a company executive.
Zomato’s entry into hyperlocal deliveries came during a period of stress for key players like Reliance Retail-backed Dunzo, leading to other companies such as SoftBank-backed Ola venturing into the segment. However, Zomato’s attempt did not achieve the desired success.
Meanwhile, Zomato has reintroduced its intercity food delivery service, ‘Legends,’ now in its third iteration. The revamped service delivers food directly from renowned restaurants in select cities, requiring a minimum order value of Rs 5,000. Additionally, customers can now curate orders from different restaurants across the country within a single order. This service is currently available in cities such as Delhi-NCR and Bengaluru, with plans for further expansion.
Originally launched in 2022, ‘Legends’ previously delivered pre-stocked food items from other cities with a shorter delivery timeline. However, in April this year, the service was suspended due to low consumer traction and legal challenges. A legal case filed by a New Delhi resident had contested Zomato‘s delivery promises, alleging that pre-stocked items were being delivered from nearby warehouses instead of directly from restaurants.
As of 1:45 pm on Thursday, Zomato’s shares were trading 0.2% higher on the BSE at Rs 208.60. The company continues to explore new avenues and refine its services to better cater to its user base.
