Months after discontinuing its logistics service ‘Xtreme’ due to weak demand, foodtech giant Zomato is now reportedly set to overhaul the offering and launch it again in the market.
According͏͏ to͏͏ ET,͏͏ Zomato’s͏͏ Xtreme͏͏ is͏͏ undergoing͏͏ a͏͏ shift͏͏ in͏͏ focus.
Focus͏͏ on͏͏ Food͏͏ Delivery:
“The͏͏ service͏͏ is͏͏ being͏͏ adjusted͏͏ to͏͏ emphasize͏͏ the͏͏ company’s͏͏ core͏͏ strength͏͏ in͏͏ food͏͏ delivery.͏͏ Many͏͏ restaurants͏͏ already͏͏ handle͏͏ direct͏͏ deliveries.͏͏ This͏͏ could͏͏ remain͏͏ an͏͏ experiment͏͏ that͏͏ the͏͏ company͏͏ may͏͏ or͏͏ may͏͏ not͏͏ choose͏͏ to͏͏ expand,”͏͏ sources͏͏ indicated͏͏ in͏͏ the͏͏ report.
Xtreme,͏͏ a͏͏ quick͏͏ parcel͏͏ delivery͏͏ service͏͏ for͏͏ merchants͏͏ featuring͏͏ a͏͏ standalone͏͏ application,͏͏ was͏͏ launched͏͏ in͏͏ October͏͏ 2023͏͏ as͏͏ part͏͏ of͏͏ the͏͏ foodtech͏͏ startup’s͏͏ entry͏͏ into͏͏ the͏͏ logistics͏͏ sector.
However,͏͏ the͏͏ company͏͏ had͏͏ to͏͏ shut͏͏ down͏͏ its͏͏ logistics͏͏ division͏͏ in͏͏ July͏͏ due͏͏ to͏͏ low͏͏ demand,͏͏ leading͏͏ to͏͏ the͏͏ removal͏͏ of͏͏ the͏͏ Xtreme͏͏ app͏͏ from͏͏ the͏͏ Google͏͏ Play͏͏ Store.͏͏ Current͏͏ users͏͏ now͏͏ see͏͏ a͏͏ message͏͏ indicating͏͏ that͏͏ their͏͏ area͏͏ is͏͏ not͏͏ serviceable.
Continue͏͏ Exploring:͏͏ Zomato shuts͏͏ down͏͏ ‘Xtreme’͏͏ delivery͏͏ service,͏͏ relaunches͏͏ ‘Legends’͏͏ for͏͏ intercity͏͏ food͏͏ delivery
“There͏͏ are͏͏ several͏͏ restaurants͏͏ in͏͏ various͏͏ cities͏͏ that͏͏ prefer͏͏ to͏͏ keep͏͏ their͏͏ own͏͏ ordering͏͏ channels͏͏ while͏͏ still͏͏ wanting͏͏ the͏͏ quality͏͏ of͏͏ last-mile͏͏ delivery͏͏ provided͏͏ by͏͏ Zomato.͏͏ In͏͏ the͏͏ previous͏͏ experiment,͏͏ the͏͏ scale͏͏ never͏͏ grew͏͏ large͏͏ enough͏͏ to͏͏ impact͏͏ the͏͏ company’s͏͏ food͏͏ delivery͏͏ services͏͏ for͏͏ its͏͏ restaurant͏͏ partners.͏͏ However,͏͏ if͏͏ it͏͏ manages͏͏ to͏͏ reach͏͏ a͏͏ certain͏͏ scale,͏͏ a͏͏ decision͏͏ will͏͏ be͏͏ made͏͏ accordingly,”͏͏ one͏͏ of͏͏ the͏͏ sources͏͏ mentioned͏͏ in͏͏ the͏͏ report.
Exploring͏͏ New͏͏ Business͏͏ Ventures:
Additionally,͏͏ the͏͏ unicorn͏͏ attempted͏͏ to͏͏ relaunch͏͏ its͏͏ intercity͏͏ delivery͏͏ service,͏͏ Legends,͏͏ in͏͏ July,͏͏ but͏͏ it͏͏ was͏͏ suspended͏͏ just͏͏ a͏͏ month͏͏ after͏͏ entering͏͏ the͏͏ market.͏͏ The͏͏ decision͏͏ to͏͏ shut͏͏ down͏͏ Legends͏͏ was͏͏ in͏͏ line͏͏ with͏͏ Zomato’s͏͏ strategy͏͏ of͏͏ experimenting͏͏ with͏͏ new͏͏ offerings,͏͏ particularly͏͏ in͏͏ the͏͏ food͏͏ delivery͏͏ segment,͏͏ and͏͏ discontinuing͏͏ those͏͏ that͏͏ do͏͏ not͏͏ gain͏͏ sufficient͏͏ traction.
Continue͏͏ Exploring:͏͏ Zomato shuts͏͏ down͏͏ intercity͏͏ service͏͏ ‘Legends’͏͏ just͏͏ a͏͏ month͏͏ after͏͏ relaunch
The͏͏ company͏͏ has͏͏ been͏͏ conducting͏͏ various͏͏ experiments͏͏ this͏͏ year͏͏ to͏͏ assess͏͏ the͏͏ potential͏͏ of͏͏ expanding͏͏ its͏͏ business͏͏ lines͏͏ into͏͏ areas͏͏ such͏͏ as͏͏ logistics,͏͏ entertainment,͏͏ last-mile͏͏ deliveries,͏͏ large͏͏ order͏͏ fleets,͏͏ and͏͏ more.
In͏͏ late͏͏ August,͏͏ the͏͏ company͏͏ acquired͏͏ Paytm’s͏͏ ticketing͏͏ subsidiaries,͏͏ Wasteland͏͏ Entertainment͏͏ Private͏͏ Limited͏͏ and͏͏ Orbgen͏͏ Technologies͏͏ Private͏͏ Limited,͏͏ for͏͏ INR͏͏ 2,048͏͏ crore͏͏ in͏͏ an͏͏ all-cash͏͏ transaction.
