Zomato Halts 'Xtreme' Delivery Service, Relaunches 'Legends'

SUMMARY

The Xtreme app has been removed from Google Play Store. For existing users, it displays the message that the area is not serviceable

Zomato launched Xtreme in October last year, rolling it out in nearly all of the 750-800 cities where the company offers food delivery

Under the relaunched ‘Legends’ service, Zomato has shifted back to delivering directly from restaurants rather than pre-stocked items

Continuing its experiment spree, foodtech giant Zomato has now suspended its logistics business ‘Xtreme’ due to poor demand.

The Xtreme app has been removed from Google Play Store. For existing users, it displays the message that the area is not serviceable.

Besides, the company has also relaunched its intercity food delivery offering ‘Legends’. The developments were first reported by ET.

Zomato launched Xtreme in October last year, rolling it out in nearly all of the 750-800 cities where the company offers food delivery. It targeted both small and large merchants for delivering small packages intracity, similar to services provided by Shadowfax, Porter, and Loadshare.

The package delivery charges started at INR 35 on Xtreme.

However, a compony executive told ET, “It was an experiment…a lot of restaurants do direct delivery and the company’s feedback was that restaurants wanted a similar quality of experience for direct deliveries. That was the basis on which Xtreme was rolled out. But it was always an experiment and could have swung either way.”

Inc42 has reached out to Zomato for a comment on the development. The story will be updated on receiving a response.

Meanwhile, Legends has been launched in Delhi NCR and Bengaluru, with plans to expand to other cities soon, ET said.

In the latest iteration of the service, under which Zomato delivers food from renowned restaurants in select cities, the company has shifted back to delivering directly from restaurants rather than pre-stocked items. It has also set a minimum order value of INR 5,000 for the service.

Additionally, customers can now curate orders from various restaurants nationwide within a single order.

Legends was launched in 2022. Last year, the company tweaked the model to deliver pre-stocked items from other cities within a shorter delivery timeline.

In April, the company suspended the intercity delivery service to further streamline and consolidate operations.

The development is in line with Zomato’s spree of experiments in the food delivery space. On Wednesday, Inc42 reported that the company has expanded ‘Zomato Everyday’ to Mumbai.

Last month, the company rolled out a restaurant services hub, to help restaurants plug in various operational requirements like hiring, FSSAI registrations, taxation and trademarking.

In April, it was also reported that Zomato was piloting last-mile delivery services to office goers inside corporate parks. It also launched an all-electric ‘large order fleet’ to deliver large orders for up to 50 people in one go.