Zomato Enters the Logistics Space with 'Xtreme' According to Xtreme, the platform has already onboarded over 300,000 delivery partners. Merchants can only send intra-city packages weighing up to 10kg.
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Zomato has forayed into the logistics space with 'Xtreme', a platform focusing on quick and easy package delivery for merchants.
The food-delivery start-up has rolled out a separate mobile application for the offerings. It is currently available only on Android devices. Reportedly, the app allows the sending of packages at INR 35 rupees.
In May, it was reported that the Deepinder Goyal-led company was looking into diversifying its portfolio by eyeing the logistics market. According to Xtreme, the platform has already onboarded over 300,000 delivery partners. Merchants can only send intra-city packages weighing up to 10kg.
Now, Zomato's Xtreme will compete with Shadowfax, Dunzo, and Borzo in the space.
The trend of entering into logistics has previously been adopted by Uber, rival Swiggy, and Rapido.
Previously, Zomato launched Hyperpure in 2018 which focused on providing fresh vegetables, fruits, and other daily utilities to restaurant outlets, and acquired Blinkit in 2022 for USD 568 million in an all-stock deal. In 2022, it also launched an inter-city food delivery service called Legends which allowed customers to order popular food from other cities.
It also holds its IP Zomaland, a food carnival, which operates in eight cities and has 400+ restaurants.
Zomato reported its first consolidated profit for the first time in Q1 FY24. Its revenue was up by 18 per cent to reach INR 2,416 crore with a first-time posting of net profits worth INR two crore.
Operating revenue rose by 71 per cent from Q1 FY23 to Q1 FY24 courtesy of a massive growth in Hyperpure. Goyal believes that Blinkit is likely to drive more value than Zomato in the next ten years.