Food delivery company Zomato has reintroduced its intercity food delivery service, Intercity Legends, which originally commenced in 2022. However, the minimum order value has been increased to INR 5,000 to enhance profitability per delivery. Currently, this service is exclusively available to select customers in Delhi NCR, Bengaluru, Mumbai, and a few other cities.
Previously under Intercity Legends, there was no fixed minimum order value; as such, the final amount varied between users. The service was paused in April following several iterations during its initial phase. Despite this temporary suspension, the company had indicated plans for a relaunch upon achieving an optimal product-market fit (PMF).
Additionally, while reviving an older service offering with modifications, Zomato has discontinued a relatively new initiative Xtreme, a logistics service based out of Gurugram that facilitated merchants in sending and receiving small parcels.
In May 2023 reports suggested that Zomato was piloting B2B delivery solutions as part of its strategy to diversify revenue streams. Xtreme boasted over 300K delivery partners but utilized no dedicated fleet; instead it relied on its existing pool of delivery executives.
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With Xtreme, Zomato engaged in competition with Dunzo’s B2B division, Dunzo for Business (D4B), as well as LoadShare, Wefast, Blowhorn, and several other companies. Additionally, Porter, Ola, and Uber offer hyperlocal services that extend beyond purely business applications. Among its clientele was Tata 1mg, an e-pharmacy company that identified certain inefficiencies within Zomato’s B2B service.
While many initiatives are still in their pilot phases, Zomato aims to diversify its operations beyond food and grocery delivery. The company is currently negotiating the acquisition of Paytm’s ticketing segment and is also reinstating former executives such as Rahul Ganjoo, previously head of new business ventures and Pradyot Ghate, a former vice president before his departure.