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Home » Zomato Diversifies to Logistics Service
News Update

Zomato Diversifies to Logistics Service

Zomato already has more than 3 lakh delivery partners under Xtreme, as per the details available on the Xtreme app
News DeskBy News Desk14 October 2023No Comments2 Mins Read
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In a recent move to diversify the revenue stream, online food delivery platform has launched its new logistics service, ‘Xtreme’ that will allow merchants to send and receive parcels, and marks the firm’s debut in the segment.

“Xtreme simplifies the entire delivery process, making it easy for merchants to send packages to their valued customers. Whether you’re a small shop or a large retailer, we’ve got you covered,” says a message on the app’s homepage.

Google Playstore has also introduced the Xtreme by Zomato in their platform. Zomato already has more than 3 lakh delivery partners under Xtreme, as per the details available on the Xtreme app. 

About the service

In the app, merchants are allowed to send intra-city packages that weigh up to 10 kilograms with the price starting at INR 35. The Xtreme app is only available to Android users for now and does not show up on Apple’s App Store yet.

Reportedly, Zomato began the B2B logistics service testing in May, and that eventually launched as Xtreme.

With this new launch, Zomato will compete with Swiggy’s hyperlocal service Genie, Dunzo’s B2B firm Dunzo for Business among many others

It is also reported that companies like Tata 1mg, the e-pharmacy company, have been fostering Zomato’s B2B offering for a few months now.

As per available sources, the innovative initiative comes as Zomato reported a net profit of INR 2 crore in the first quarter of the financial year 2023-24 (FY24). In the corresponding quarter of the previous financial year (Q1FY23), the company had a loss of INR 186 crore, where its revenue from operations rose nearly 70.86% year-on-year (Y-o-Y) to INR 2,416 crore from INR 1,414 crore last year.

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