Zomato, a food delivery company headquartered in Gurugram, has discontinued its hyperlocal goods distribution service, ‘Xtreme’, due to insufficient demand.
Xtreme’s objective was to revolutionize the intra-city delivery market by focusing on small and large merchants for small parcel deliveries. This service was implemented in nearly all of the 750-800 cities in which Zomato operates, utilizing the company’s extensive fleet.
The anticipated traction was not achieved by ‘Xtreme’, despite the strategic launch. This has led to the removal of the ‘Xtreme’ app from the Google Play Store by Zomato.
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Zomato’s endeavor to dominate the hyperlocal delivery market occurred during a period of significant instability for its competitors. Dunzo, which was backed by Reliance Retail, was experiencing operational difficulties. This created an opportunity for Ola, which was backed by SoftBank, to enter the hyperlocal segment in Bengaluru with its ‘Ola Parcel’ service, which was facilitated by its electric two-wheeler fleet.
Parallel to this, Zomato has revitalized its intercity food delivery service, ‘Legends,’ by introducing its third iteration. ‘Legends’ allows customers to enjoy dishes from renowned restaurants in specific cities that are delivered directly to their entryway.
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