Zomato launches merchant-focused parcel delivery app Xtreme

Food delivery company Zomato has launched Xtreme, a service which will allow merchants to send and receive small parcels that will enable the company to diversify its revenue stream and also make use of its wide network of delivery partners.

According to Zomato, merchants can only send intra-city packages that weigh up to 10 kilograms with the price starting at Rs 35. The Xtreme app is only available on Android users for now. It claims to have more than 3 lakh delivery partners under Xtreme and allows merchants to track their shipments.

While the feature is not new, Zomato’s reach and vast delivery fleet may help it to churn significant volume and revenue for the company in the long haul.

With this, the company will compete with its arch-rival Swiggy’s parcel moving feature: Swiggy Genie, Porter and Dunzo, Flipkart-backed Shadowfax and various new and traditional logistics companies. The move also indicates that the Gurugram-based firm has started evaluating full-fledged logistics play and may get into e-commerce and D2C focused logistics biz.

MoneyControl reported the development first.