 "Zomato is now allowing its users to build multiple carts at one time")
In a move designed to diversify its revenue stream, online food delivery platform Zomato has begun a logistics service called Xtreme that will enable merchants to send and receive small parcels. According to Zomato, merchants can only send intra-city packages that weigh up to 10 kilograms, with the price starting at Rs 35.
As is the case with Zomato's food delivery service, merchants can live-track their shipments. According to the details available on the app, Zomato already has more than 300,000 delivery partners under Xtreme.
In May, reports suggested that Zomato had begun piloting a logistics service to compete with delivery services such as Shadowfax and Dunzo to leverage its vast network of delivery partners.
"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.
The Xtreme app is only available to Android users and is not available on Apple's App Store yet. Zomato's rival Swiggy, also offers a hyperlocal delivery service called Swiggy Genie. Genie even lets customers send and receive packages.
In 2022, the company started an inter-city food delivery service called Legends that seeks to enable customers to order from popular restaurants in other cities. The service has now been included exclusively in the company's Gold subscription programme. Zomato restarted the Gold subscription programme in January this year.
The development comes as Zomato reported a net profit of Rs 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 Rs 186 crore. Its revenue from operations rose nearly 70.86 per cent year-on-year (Y-o-Y) to Rs 2,416 crore from Rs 1,414 crore last year.
