Zomato has expanded into the logistics sector through its ‘Xtreme’ brand as part of its strategy to diversify its revenue streams.
The newly introduced service is now accessible on the Android platform and is primarily aimed at catering to merchants. Zomato’s homepage describes Xtreme as a solution for merchants seeking to streamline their package delivery operations.
With Xtreme, merchants can bid farewell to delivery-related complications and embrace a seamless delivery experience. The service simplifies the entire delivery process, making it convenient for merchants to dispatch packages to their valued customers. This offering is suitable for both small shops and large retailers.
Just like Zomato’s food delivery service, Xtreme also provides real-time package tracking for merchants and their customers. Currently, the service allows for the delivery of intra-city packages weighing up to 10 kg, with pricing starting at Rs 35.
Zomato has already enlisted over 3 lakh delivery partners for the Xtreme service. The company has not officially commented on this new service.
On the stock market, Zomato’s shares saw a 1.14 per cent gain, closing at Rs 111.05 on the BSE. This uptick follows Zomato’s recent announcement of its first-ever consolidated profit after tax of Rs 2 crore for the April-June quarter of 2023-24, marking a significant turnaround from the net loss of Rs 186 crore recorded in the same period of the previous fiscal year.
During the first quarter, the company reported consolidated revenue from operations of Rs 2,416 crore, up from Rs 1,414 crore in the same period the previous year. Total expenses also increased, reaching Rs 2,612 crore, compared to Rs 1,768 crore in the corresponding quarter a year ago.
In a letter to shareholders, Zomato’s managing director and CEO, Deepinder Goyal, emphasised the company’s efforts to simplify its business and optimise its organisational structure. In May, he had expressed confidence in achieving profitability for the entire business within the next four quarters.
