New Delhi: Zomato has decided to discontinue its ‘Xtreme’ hyperlocal delivery service due to low demand, according to a report by The Economic Times. Launched in October last year, ‘Xtreme’ aimed to utilize Zomato’s existing delivery fleet to transport small packages for both small and large merchants, akin to services like Porter.
A Zomato executive revealed, “Many restaurants handle their own deliveries and wanted the same quality for their services. That was why we started ‘Xtreme’. But it was always an experiment and could have gone either way.” Consequently, the ‘Xtreme’ app has been removed from the Google Play Store, and Zomato has yet to issue an official statement on the suspension.
Zomato’s foray into hyperlocal delivery came at a tough time for the market. Competitors like Dunzo, backed by Reliance Retail, were experiencing difficulties, which led Ola to introduce its own service, Ola Parcel, in Bengaluru using electric two-wheelers.
In a related move, Zomato has revitalized its ‘Legends’ service, which now delivers food from renowned restaurants in one city to customers in other cities. This revamped service requires a minimum order of Rs 5,000 and allows customers to place orders from different restaurants in a single transaction.
Currently available in Delhi-NCR and Bengaluru, there are plans to expand the ‘Legends’ service further. Initially launched in 2022, ‘Legends’ had shifted to delivering pre-stocked items from other cities for quicker delivery.
As of 12:24 pm, Zomato shares were trading 0.46% lower at Rs 206.35.