Zomato Share: Zomato, a renowned food aggregator, has broadened its horizons with the introduction of its Xtreme app, a step into the realm of hyperlocal deliveries. This service will be available wherever Zomato currently offers food delivery. As of now, Zomato serves nearly 750-800 cities with its vast network of about 300,000 delivery partners.
Understanding Zomato Xtreme: Zomato Xtreme focuses on intra-city package deliveries. It promises to deliver packages weighing up to 10 kilograms, starting at a nominal fee of 35 rupees. One of the app’s distinctive features allows merchants to track their shipments. Presently, this service is available exclusively for Android users. It’s worth noting that Zomato commenced testing its B2B logistics service as early as May this year. With this new venture, Zomato is set to compete with established businesses like Swiggy’s Genie, Dunzo’s D4B, Loadshare, WeFast, and Blowhorn.
Impact on Zomato’s Financial Health: Zomato, a significant player in online food delivery, released its quarterly results earlier this year, showing a profit of 2 crore rupees for the June quarter. This marks the first time the company has reported a profit. In comparison, the company faced a loss of 186 crore rupees during the same period the previous year, and a 188 crore rupees loss in the March quarter.
The revenue for this quarter rose dramatically by 71%, reaching 2,416 crore rupees, up from 1,414 crore rupees in the same quarter the year before. After turning profitable, Zomato is looking to diversify its revenue streams and expand its business further. The company aims to continue its profitable run in the coming quarters. However, with an entry into a new business domain, it’s expected that Zomato might have to increase its expenses, which could potentially lead to some losses in the near future.