In a strategic diversification move, Zomato, the popular food aggregator platform, has entered the logistics services arena by introducing its “Xtreme” parcel delivery service.
This innovative offering empowers merchants to send and receive small parcels, leveraging Zomato’s extensive network of delivery partners.
Zomato Xtreme: Simplifying Parcel Delivery for Businesses
Zomato’s newly launched Xtreme service streamlines the entire parcel delivery process, catering to businesses of all sizes, from small shops to large retailers.
With the primary objective of diversifying revenue streams, Zomato is capitalizing on its vast delivery network to connect merchants and customers more efficiently.
The Competitive Landscape: Zomato Challenges Swiggy Genie and More
While Zomato’s competitor, Swiggy, already offers a hyperlocal delivery service known as “Swiggy Genie,” Zomato’s Xtreme sets itself apart by enabling merchants to send and receive packages, emphasizing the business-to-business (B2B) angle.
Joining the ranks of competitors like Dunzo’s B2B branch, Dunzo for Business (D4B), LoadShare, Wefast, Blowhorn, and more, Zomato is making its presence felt in the hyperlocal delivery market.
Notably, cab aggregators Ola and Uber also provide similar hyperlocal services.
Cost-Efficient and User-Friendly: Xtreme’s Pricing and Features
Zomato’s Xtreme service boasts over 3 lakh delivery partners, offering real-time tracking for merchants.
Shipments are limited to a weight of up to 10 kg, and delivery charges start at a reasonable Rs 35.
As of now, the Xtreme app is exclusively available for Android users, ensuring cost-effective and user-friendly parcel delivery.
Zomato’s Financial Performance: A Profit of Rs 2 Crore in Q1
In the first quarter of the 2023-24 fiscal year, Zomato reported a net profit of Rs 2 crore.
This remarkable financial success was underpinned by a revenue of Rs 2,416 crore, reflecting a substantial 70.9% increase compared to the previous year.
While the company’s performance in the July-September quarter is yet to be disclosed, Zomato’s foray into the parcel delivery market marks an exciting expansion for this versatile platform.