Zomato intercity food delivery

Zomato Relaunches Intercity Legends Service Amid Broader Strategic Shifts

Zomato Relaunches Intercity Legends with Higher Order Minimum Amid Service Expansion 

Food delivery giant Zomato has reintroduced Intercity Legends, its intercity food delivery service initially launched in 2022, with a new minimum order value of Rs 5,000. This increase aims to enhance profitability for each delivery. Currently, the service is available to select customers in Delhi NCR, Bengaluru, Mumbai, and a few other cities.

Previously, Intercity Legends had no fixed minimum order value, with final amounts varying from user to user. The service was paused in April for several iterations, with Zomato planning a relaunch after achieving the right product market fit (PMF).

Discontinuation of Xtreme Logistics Service 

While reviving an old service, Zomato has also discontinued Xtreme, a logistics service for small parcels, which had launched in May 2023. This service competed with Dunzo’s B2B arm, LoadShare, Wefast, Blowhorn, and others, with companies like Tata 1mg using Zomato’s B2B offering but encountering issues. Tata 1mg’s COO, Tanmay Saksena, noted that while Zomato assisted with last-mile deliveries, the uncertainty due to spikes in food orders affected their timelines. 

Xtreme had more than 3 lakh delivery partners but relied on Zomato’s existing pool of delivery executives rather than a dedicated fleet. 

Zomato’s Strategic Moves and Future Plans 

Zomato is expanding beyond food and grocery delivery, with plans to acquire Paytm’s ticketing business. The company is also bringing back former executives Rahul Ganjoo and Pradyot Ghate to explore new business ideas in the going-out sector, focusing on dining out, lifestyle, and entertainment. 

Despite not responding to requests for comments, Zomato’s recent strategic moves and service modifications indicate a broader ambition to diversify its revenue streams and refine its service offerings. 

Conclusion 

Zomato’s relaunch of Intercity Legends with a higher minimum order value and its discontinuation of the Xtreme logistics service illustrate the company’s strategic pivot to enhance profitability and streamline its operations. By reviving Intercity Legends and pausing less successful ventures like Xtreme, Zomato aims to find the right product market fit and increase efficiency. Furthermore, Zomato’s plans to acquire Paytm’s ticketing business and the return of key executives highlight its ambition to diversify its revenue streams and expand into new areas such as dining out, lifestyle, and entertainment. These moves reflect Zomato’s ongoing efforts to innovate and adapt in the competitive food delivery and logistics market.

Zomato intercity food delivery

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