ZOMATO SUSPENDS HYPERLOCAL DELIVERY SERVICE ‘XTREME' DUE TO LOW DEMAND

Zomato has discontinued its 'Xtreme' hyperlocal delivery service, citing low demand, reported The Economic Times.

Launched in October last year, the service operated in most cities where Zomato is active, utilising the existing delivery fleet to transport small packages for small and large merchants, similar to services like Porter.

A Zomato executive explained that 'Xtreme' was always intended as an experiment.

"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," the executive said. The 'Xtreme' app has been removed from the Google Play Store, and Zomato has yet to officially comment on the suspension.

Zomato's entry into hyperlocal delivery came at a challenging time for competitors. Dunzo, backed by Reliance Retail, was facing difficulties, prompting Ola to launch its own service, Ola Parcel, in Bengaluru using electric two-wheelers.

In a related development, Zomato has relaunched its 'Legends' service, which delivers food from renowned restaurants in one city to customers in other cities.

The revamped service now delivers directly from the restaurants and requires a minimum order of Rs 5,000. Customers can place orders from different restaurants in a single transaction.

Currently available in cities like Delhi-NCR and Bengaluru, there are plans for further expansion.

'Legends' was first launched in 2022 but later shifted to delivering pre-stocked items from other cities for faster delivery.

Shares of Zomato were trading 0.46% lower at Rs 206.35 at 12:24 pm.

2024-07-05T06:59:14Z dg43tfdfdgfd