Zomato Enters Logistics Business, Launches Xtreme For Merchant Deliveries

In a bid to further diversify its business, foodtech major Zomato has now forayed into the logistics space and launched a quick parcel delivery service for merchants with a new app, Xtreme.

“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,” reads the homepage of Zomato’s Xtreme app.

The app further says that charges for a package delivery start at INR 35. It also shows that Xtreme has over 3 Lakh delivery partners. Xtreme app is currently available only on Android.

The development was first reported by Moneycontrol.

Zomato declined to comment on Inc42’s queries on the new launch.

While the app says that Xtreme has been launched as a solution for merchants looking to streamline package deliveries, it is not yet clear how the app would ensure if it’s a business delivery. Inc42 found that the app is also open for retail customers to deliver packages.

Zomato’s competitor Swiggy also runs a parcel delivery service Swiggy Genie. However, Swiggy’s parcel delivery service is available to retail customers as well and it doesn’t just cater to business delivery needs.

Besides Swiggy and troubled Dunzo, Xtreme will also compete with the likes of Porter and the recently-launched Ola Parcel, though these businesses do not limit their logistics services to business deliveries.

Logistics seems to be Zomato’s latest bet at a time when the listed startup is looking to diversify its business to shore up its top and bottom lines. 

Earlier this year, it was reported that Zomato was piloting B2B logistics services and planned to rope in ecommerce platforms to help them deliver food, pharma products, and other consumer goods to customers.

Last year, the company entered the quick commerce space by acquiring Blinkit. It also offers intercity food delivery service Zomato Legends, while it has also started levying a platform fee on food delivery orders. 

Amid the news of the launch of the logistics service, Zomato informed the exchanges that it is in the process of filing an appeal against an order passed by the District Consumer Dispute Redressal Forum (II) Jodhpur, imposing a fine of INR 1 Lakh on it and McDonald’s.

Shares of Zomato were trading over 1% higher at INR 111.15 on the BSE by 2.50 PM IST on Friday (October 13).