Zomato launches Xtreme logistics service to take on Swiggy Genie
What's the story
Zomato, the popular food aggregator, has introduced a new logistics service called Xtreme.
This innovative service aims to assist merchants in sending and receiving small parcels, while also diversifying Zomato's revenue sources.
By tapping into its vast network of over 300,000 delivery partners, Xtreme offers live tracking for shipments and caters to both small shops and large retailers.
The service is set to compete with existing logistics providers such as Shadowfax, Loadshare, and Dunzo.
Details
Xtreme app details and pricing
Currently, the Xtreme app is available exclusively for Android users, with no word on a potential release for Apple.
Merchants can send intra-city packages weighing up to 10kg, with prices starting at just Rs. 35.
Similar to Zomato's food delivery service, the app allows users to live track their shipments. This new offering positions Zomato to compete with rival Swiggy's hyperlocal delivery service, Swiggy Genie.
What Next?
Competing with other hyperlocal services
Zomato's Xtreme will not only compete with Swiggy Genie but also with Dunzo's B2B arm, LoadShare, Dunzo for Business (D4B), Wefast, Blowhorn, and several others.
Porter, Uber, and Ola also offer hyperlocal services that are not limited to businesses. Companies like Tata 1mg, an e-pharmacy company, have already been leveraging Zomato's B2B offering for some time now.
Insights
Zomato's financial performance
The launch of Xtreme comes as Zomato reported a net profit of Rs. 2 crore in Q1 FY24. Its revenues stood at Rs. 2,416 crore, up 70.9% from the year-ago period.
This growth can be attributed to the cooling inflation and the strength of Zomato's food delivery platform's loyalty program.
The introduction of Xtreme is expected to further boost the company's revenues and diversify its business offerings.