Online meal delivery business Zomato has launched a logistics service called Xtreme that will let merchants send and receive small boxes in an effort to diversify its revenue source. Zomato claims that retailers can only send intra-city packages up to a weight of 10 kilograms for a starting price of Rs 35.
Merchants may live-track their shipments, just like Zomato’s food delivery service allows them to. Zomato already has more than 300,000 delivery partners under its Xtreme program, according to information available on the app.
By utilising its extensive network of delivery partners, rumours surfaced in May that Zomato had started testing a logistics service to compete with other delivery providers like Shadowfax and Dunzo.
“Xtreme makes it simple for businesses to send packages to their devoted consumers by streamlining the entire delivery procedure. We’ve got you covered, whether you’re a tiny business or a big retailer,” Zomato Xtreme stated on its webpage on October 13.
The Xtreme app is currently only accessible via Android devices; it is not yet accessible via Apple’s App Store. Swiggy, a competitor of Zomato, also provides a hyperlocal delivery service by the name of Swiggy Genie. Customers can even send and receive shipments using Genie.
The business launched Legends, a cross-city meal delivery service, in 2022 in an effort to let customers place orders from well-known eateries in other cities. The company’s Gold subscription program is currently the only one to offer the service. In January of this year, Zomato relaunched the Gold subscription program.
On Thursday, Zomato shares rose for the fourth straight session and reached a 52-week high of Rs 113 on the NSE. ICICI Securities predicts that the target price of Rs 160 may be reached by the company’s shares.
The stock has increased by more than 120% from its lows in February, and the brokerage has maintained its buy rating on it. It is now expected to rise by another 51%.
Recently, the market capitalization of the Gurugram-based business was approximately $10.8 billion. On the strength of its first profit, its market capitalization had surpassed the $10 billion threshold in August.
On August 3, the Deepinder Goyal-led company announced its first-ever consolidated quarterly net profit of Rs 2 crore, thanks to increased order frequency from program participants. This was due to an increase in revenue of 71% to Rs 2,416 crore. At the same time last year, it had posted a loss of Rs 186 crore.