Online food delivery company Zomato has decided to suspend its hyperlocal product delivery service known as ‘Xtreme’.
This service, launched in October last year across 750-800 cities where Zomato operates, aimed to facilitate intracity deliveries similar to services by Shadowfax, Porter, and Loadshare.
Background of Xtreme
Initially targeting both small and large merchants, Xtreme allowed for the delivery of small packages within cities, with a weight limit of 10 kg and packages starting at ₹35.
Despite its widespread launch, Zomato has removed the Xtreme app from the Google Play Store without issuing an official statement.
Reasons for Suspension
Zomato described Xtreme as an experimental service that allowed merchants to send and receive parcels within cities, with packages weighing up to 10 kg starting at ₹35.
Despite its broad rollout, Zomato has chosen to discontinue Xtreme within a year, though no official statement has been released explaining this decision.
Market Dynamics
The move comes amidst a competitive landscape where Zomato faced challenges from established players like Dunzo, backed by Reliance Retail, and recently, Ola’s entry into hyperlocal delivery in Bengaluru.
Zomato’s Strategic Moves
Following the suspension of Xtreme, Zomato has refocused on its intercity food delivery service ‘Legends’. Meanwhile, Zomato’s stock closed at Rs 207.30, down by 0.41% from the previous trading day.
Is this rewritten content suitable for your needs? If you have any specific changes or additions, feel free to let me know!
