Zomato, the popular food delivery company, has announced the launch of Zomato Xtreme, a service designed to enable merchants to send and receive small parcels within the city. This strategic move aims to diversify Zomato’s revenue streams and leverage its extensive network of delivery partners.

The Xtreme service allows merchants to dispatch intra-city packages weighing up to 10 kilograms, with pricing starting at Rs 35. Currently, the Xtreme app is exclusively available for Android users. Zomato proudly boasts a vast fleet of more than 300,000 delivery partners who will play a crucial role in facilitating the parcel delivery service. Additionally, Xtreme offers shipment tracking capabilities to merchants, ensuring transparency and accountability.

While the concept of a parcel delivery service is not entirely new, Zomato’s widespread reach and extensive delivery network position it to handle significant volumes of parcel deliveries, potentially generating substantial revenue for the company in the long term. This initiative places Zomato in direct competition with its chief rival, Swiggy, which already offers parcel-moving services such as Swiggy Genie, Porter, and Dunzo. Furthermore, this move suggests that Zomato is actively exploring a more comprehensive role in the logistics sector, hinting at possible forays into e-commerce and direct-to-consumer (D2C) logistics services.

By introducing Zomato Xtreme, the company is strategically capitalizing on its existing infrastructure, expanding its offerings, and exploring new revenue opportunities in the competitive Indian market. This step reflects Zomato’s ambition to play a more substantial role in the broader logistics and delivery ecosystem.