Zomato Launches Xtreme – A Parcel Delivery App To Rejig Logistics Business

Zomato launches Xtreme

In a strategic move, Zomato, the food delivery giant, has unveiled its latest venture – Xtreme. Zomato launches Xtreme as an intra-city logistics service is designed to cater to merchants, marking Zomato’s ambitious foray beyond its core food delivery business.

Zomato launches Xtreme

A New Chapter in Zomato’s Journey

Zomato, a name synonymous with food delivery in India, is no stranger to diversifying its portfolio. From restaurant listings to grocery deliveries, the company has consistently evolved to meet the changing demands of its vast user base. With Xtreme, Zomato is eyeing a slice of the burgeoning logistics market, aiming to streamline parcel deliveries for merchants across cities.

What is Xtreme All About?

Xtreme is not just another delivery app. It’s a meticulously crafted solution for merchants, offering them a reliable platform for intra-city deliveries. Whether it’s a boutique store delivering handcrafted goods or a local business sending out bulk orders, Xtreme promises to make the process seamless.

The service boasts of features that prioritize the needs of merchants. Real-time tracking, efficient route optimization, and a user-friendly interface are just a few of the many features that set Xtreme apart. Moreover, with Zomato’s vast delivery network and infrastructure, merchants can expect faster and more efficient deliveries.

Why the Sudden Pivot to Logistics?

Zomato’s decision to enter the logistics space is not a sudden shift, but a well-thought-out strategy. This move capitalizes on the remarkable growth in the Indian logistics industry, driven by the e-commerce boom and changing consumer behaviors.

E-Commerce Boom and Logistics Growth

The e-commerce sector in India has expanded rapidly, creating a surge in demand for efficient and reliable delivery services. Zomato’s entry into logistics aligns perfectly with this growing demand.

Changing Consumer Preferences

Evolving consumer preferences, especially the increasing inclination towards online shopping, have significantly influenced the logistics industry’s trajectory in India. Zomato recognizes the potential to serve this evolving market.

Leveraging Existing Infrastructure

Zomato’s existing delivery infrastructure, honed through its food delivery services, provides a competitive advantage. This infrastructure allows a seamless transition into the broader logistics domain without extensive changes.

Diversifying Revenue Streams

Beyond food delivery, Zomato aims to diversify its revenue streams. Venturing into logistics enables the company to offer services to a broader customer base, reducing dependence on a single market segment.

The Impact of the Pandemic

The COVID-19 pandemic has underscored the need for reliable delivery services. Lockdowns and restrictions have pushed businesses to rely on delivery platforms to reach their customers.

Zomato’s Xtreme – Filling the Gap

Zomato’s logistics service, Xtreme, is positioned to address the pressing need for reliable delivery services. It offers businesses a trusted partner to meet their delivery requirements, especially during the pandemic.

Calculated Expansion

Thus, Zomato’s entry into the logistics industry is a well-calculated expansion strategy. It leverages market trends, changing consumer behaviors, and Zomato’s existing infrastructure to diversify revenue streams and provide reliable delivery services through Xtreme.

Note: Do you know, Zomato also launched a membership program to drive loyal customers and to expand the userbase. According to HSBC, the market share of Zomato is expected to reach 57% in FY24. This is a very positive sign for the company. According to the founders, it was a long journey for Zomato from a menu listing app to a food delivery service. It was one of the most successful pivots in Indian history.  For three months, Zomato Gold You will get the following benefits in Zomato Gold

  • The delivery fee on your food orders will be Rs.0.00 only if the price of the food is higher than Rs.199. And the restaurant/cloud kitchen must be in the vicinity of 10km from your home.
  • You will get VIP access to partnered restaurants in the rush hour.
  • Enjoy 30% extra discounts on food orders (food price) & diners.
  • Zomato Gold assures no delay guarantee on orders.

The Road Ahead for Zomato and Xtreme

While the launch of Xtreme is a significant milestone for Zomato, it’s just the beginning. The company is gearing up to invest heavily in this new venture, ensuring that it meets the high standards that Zomato’s users have come to expect.

The initial response to Xtreme has been overwhelmingly positive. Merchants have lauded the platform for its efficiency and reliability. As more businesses come on board, Zomato’s latest venture is set to revolutionize the way merchants handle deliveries.

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Published By: Supti Nandi
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Manan Sharma
Manan Sharma
23 days ago

Yeah, it is one of the major milestone for the company, but recently Zomato again hit the headlines as the founder has bought a big piece of land in Delhi land deal. It will be interesting to see it’s future work now!