Food aggregator Zomato has launched Xtreme service that will allow merchants to send and receive small parcels, a move aimed at diversifying revenue stream and also making use of the startup’s wide network of delivery partners.
Moneycontrol reported that the food tech firm was piloting the offering and was set to launch a white-label logistics service to compete with the likes of Shadowfax, Loadshare and Dunzo.
“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,” Zomato Xtreme said on its homepage on October 13.
Zomato already has more than 3 lakh delivery partners under Xtreme, as per the details available on the Xtreme app. It will also allow merchants to live track their shipments, as is the case with its food delivery.
Merchants can only send intra-city packages that weigh up to 10 kilograms with the price starting at Rs 35, Zomato said in a banner.
The Xtreme app is only available to Android users for now and does not show up on Apple’s App Store yet. It is unclear if Zomato will launch a version for Apple users.
Zomato declined to comment on the development.
Zomato’s rival Swiggy also runs a hyperlocal delivery service — Swiggy Genie. Genie, however, does not limit its offerings and allows even customers to send and receive packages.
With Xtreme, Zomato will also compete with Dunzo’s B2B arm, Dunzo for business (D4B), LoadShare, Wefast, Blowhorn and several others. Porter, Ola and Uber also offer hyperlocal services which are not limited to just businesses.
Companies like Tata 1mg, the e-pharmacy company, have been leveraging Zomato’s B2B offering for a few months now.
“Zomato has been able to help with last-mile deliveries but we’re looking at more partnerships that are not full of uncertainties because in Zomato’s case, our order timelines might get affected by a spike in food orders,” Tata 1mg’s chief operating officer Tanmay Saksena had told Moneycontrol earlier.
The launch comes at a time when on Zomato posted a net profit of Rs 2 crore in Q1FY24. Its revenues stood at Rs 2,416 crore, up 70.9 percent from the year-ago period, as demand growth recovered on cooling inflation and strength of the food delivery platform’s loyalty programme.
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