Zomato has resumed its ‘Legends’ intercity food delivery service and has discontinued its ‘Xtreme’ hyperlocal delivery service owing to low demand. ‘Xtreme,’ which debuted in October of last year, was intended to use Zomato’s current delivery fleet to carry small parcels for both small and large businesses, akin to Porter’s services. Unfortunately, there was insufficient demand for the service, therefore it was dropped.
‘Xtreme’ is an experiment meant to satisfy eateries’ demands for direct delivery, according to a Zomato official. “Many restaurants use direct delivery, and they desired deliveries of the same caliber. That’s the reason we launched ‘Xtreme’. However, the executive clarified that it was always an experiment and could have gone other way. The ‘Xtreme’ app has been taken down from the Google Play Store after it was suspended, although Zomato has not yet released an official statement on the matter.
Zomato’s entry into the hyperlocal delivery space came at a difficult moment for rivals. For example, Ola launched Ola Parcel—its own service—using electric two-wheelers in Bengaluru because Dunzo, which was backed by Reliance Retail, was having problems.
Simultaneously, Zomato has brought back its ‘Legends’ service, which ships meals from well-known eateries in one location to clients in another. The redesigned service now requires a minimum order value of Rs 5,000 and includes direct deliveries from eateries. Additionally, patrons are able to combine orders from several restaurants into a single order. ‘Legends’ is now accessible in a few locations, including Bengaluru and Delhi-NCR, with ambitions to expand soon.
Originally launching in 2022, “Legends” later shifted to shipping pre-stocked items from other locations in order to guarantee speedier delivery. Due to limited demand and legal issues, this strategy was suspended in April since it did not live up to customer expectations. Zomato was sued by a resident of New Delhi who claimed that the company had promised delivery from well-known eateries in other cities but had instead delivered pre-stocked products from nearby warehouses. The matter is still open.
Zomato’s choice to discontinue ‘Xtreme’ and reintroduce ‘Legends’ is indicative of its continuous endeavours to adjust to changing market conditions and enhance consumer contentment. The company is hopeful that the relaunched ‘Legends’ service would better serve client needs and spur future growth, even though ‘Xtreme’ did not yield the expected results.
