Zomato suspends hyperlocal goods delivery service Xtreme, restarts Intercity Legends: sources

economictimes.indiatimes.com:

Zomato has suspended its hyperlocal goods delivery service ‘Xtreme’ on account of poor demand, according to people aware of the matter. The food delivery platform had launched the service in October last year.

Separately, the company has also relaunched its intercity food delivery offering ‘Legends’ in a third avatar.

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Xtreme was rolled out in nearly all of the 750-800 cities where Zomato offers food delivery, and leveraged the existing fleet. It targeted both small and large merchants for delivering small packages intracity on the lines of services provided by Shadowfax, Porter and Loadshare.

The company has also removed the Xtreme app from Google Play Store.

Zomato did not respond to a request for comment.

However, a company executive said, “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.”

Zomato’s foray into hyperlocal deliveries had come at a time when one of the key players in the ecosystem – Reliance Retail-backed Dunzo--was undergoing severe stress. The deceleration of Dunzo’s operations