Zomato will now provide intra-city logistics services to merchants.
Key Highlights
- Zomato has launched the ‘Xtreme’ app to provide logistics services.
- The app will provide intra-city deliveries for businesses.
- The ‘Xtreme’ app can be downloaded from the Google Play Store.
Zomato, a name synonymous with food delivery has ventured into logistics services, targeting local merchants.
It has launched ‘Xtreme’, an app enabling businesses to send packages weighing upto 10 kilograms with the price of delivery starting at INR 35. However, the delivery service will be intra-city, as of now.
While the ‘Xtreme’ app is now available on the Google Play Store, it is still missing on Apple’s App Store.
Zomato’s foray into logistics services puts it in direct competition with companies like Dunzo and Swiggy.
While Dunzo has a separate B2B arm, called the Dunzo for Business (D4B), Swiggy offers logistics services through Swiggy Genie.
In the description of the Xtreme app, the company mentions the following, “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.”
The app would allow businesses to live-track their shipments, similar to the functionality available on the food delivery app.
Zomato’s recent efforts at Diversification
Zomato had earlier made its plan public to diversify its revenue streams with the food delivery company acquiring small startups and starting new services.
It had earlier launched a pan-India food delivery service named ‘Legends’, allowing its customers to order food from popular restaurants in different cities.
The foray of the Food Delivery giant into the logistics sector comes amidst Shadowfax joining the ONDC network to provide logistics services across 700 cities. This puts the ‘Xtreme’ app launched by Zomato in direct competition with Shadowfax.
It also faces competition in the food delivery business with Ola being in its testing phase to launch food delivery services through the ONDC network.
The company has been under higher scrutiny since its IPO, and has been making attempts to turn profitable. It had posted its first-ever profit in 2023 since its incorporation.
