Zomato, the Indian foodtech giant, is preparing to relaunch its logistics service, Xtreme, after suspending it earlier this year due to weak demand. The service, which initially launched in October 2023, was designed for quick parcel delivery for merchants. However, by July 2024, Zomato pulled the plug on Xtreme after insufficient demand led to the app’s removal from the Google Play Store. Existing users were notified that their areas were no longer serviceable.
The relaunched version of Xtreme is set to focus more on last-mile delivery solutions for restaurants, aligning closely with Zomato’s core strength in food delivery. According to reports, the company aims to target restaurants seeking quality delivery services for their independent channels, capitalizing on its established logistics expertise in food delivery.
The relaunch is currently experimental, and Zomato has not committed to scaling the service in the long term. The company is likely to monitor the demand before deciding on a broader rollout.
This is not the first time Zomato has retracted and reworked one of its offerings. In July 2024, Zomato attempted to revive its intercity delivery business, Legends, but the service was discontinued just a month later. This fits into Zomato’s ongoing strategy of experimenting with new business models, such as logistics, large-order fleets, and even entertainment ventures, with a rapid pullback on offerings that fail to gain market traction.
In a bid to diversify, Zomato made a significant acquisition in August 2024, purchasing Wasteland Entertainment and Orbgen Technologies—the event and ticketing subsidiaries of Paytm—for INR 2,048 crore in an all-cash deal. This move positions Zomato to expand its presence beyond food delivery and logistics, venturing into entertainment and events as part of its long-term growth strategy.
As Zomato continues to test and refine its business model, its recalibrated approach to Xtreme reflects the company’s commitment to adaptive growth, experimenting with new revenue streams while leveraging its core competencies.
Credit: This article is based on information from public reports and Zomato’s official sources.
Key Highlights:
- Zomato is relaunching Xtreme, its logistics service, after suspending it due to weak demand in July 2024.
- The refocused service will target restaurants seeking last-mile delivery for independent channels.
- The relaunch is experimental, with no commitment to scaling yet.
- Zomato has previously retracted business models, including Legends in July 2024.
- In August 2024, Zomato acquired Wasteland Entertainment and Orbgen Technologies for INR 2,048 crore, expanding into the event and ticketing space.