In a significant move to diversify its revenue streams and harness its expansive network of delivery partners, leading food delivery company Zomato has launched Xtreme—a specialized service designed for merchants. Xtreme allows merchants to efficiently send and receive small parcels, leveraging Zomato's extensive delivery infrastructure.
Merchants can now utilize Xtreme to dispatch intra-city packages weighing up to 10 kilograms, with prices starting at a reasonable Rs 35. Presently, the Xtreme app is exclusively available for Android users, offering a convenient and user-friendly interface. Zomato has proudly disclosed that Xtreme boasts a staggering 3 lakh delivery partners, providing merchants with the ability to track their shipments seamlessly.
While the concept of merchant-focused parcel delivery is not entirely new, Zomato's expansive reach and formidable delivery fleet give it a distinct advantage. This strategic move is anticipated to generate significant volume and revenue for the company over the long term.
Zomato's entry into this arena puts it in direct competition with its chief rival, Swiggy, which offers a similar service through Swiggy Genie. Additionally, Zomato will contend with other industry players, including Porter, Dunzo, Shadowfax (backed by Flipkart), and various traditional and emerging logistics companies. This development also signifies Zomato's foray into evaluating a comprehensive logistics approach, potentially paving the way for ventures into e-commerce and direct-to-consumer (D2C) focused logistics business.
With Xtreme now in action, Zomato continues to position itself as a versatile entity, catering not only to consumers' food cravings but also facilitating efficient and secure parcel deliveries. Stay tuned as Zomato's journey into logistics and e-commerce unfolds, promising exciting new developments for both merchants and consumers alike.