Zomato has entered the logistics sector with the launch of Zomato Xtreme, enabling merchants to send packages starting at Rs 35. This new offering, facilitated through a separate app currently available on Android devices, aims to provide quick and cost-effective deliveries for merchants to their customers’ doorsteps.
By venturing into logistics, Zomato is positioning itself to compete with established players like Shadowfax, Dunzo, and Borzo. This strategic move showcases Zomato’s commitment to diversify its revenue streams beyond its core businesses of food and grocery delivery, such as Blinkit.
While food delivery remains Zomato’s primary business, the expansion into alternative verticals like Hyperpure and dining demonstrates its ability to leverage its extensive delivery partner network to optimize costs.
Zomato introduced Hyperpure in 2018, focusing on supplying restaurants with fresh vegetables, fruits, and other daily essentials. The company considers Hyperpure as a significant avenue for growth. In recent quarters, its supplies business, including Hyperpure, has substantially contributed to Zomato’s revenue growth.
This expansion strategy aligns with Zomato’s ambition to introduce a ready-to-eat line, including desserts and beverages, while further expanding its ready-to-eat range for restaurants. The company recorded its first-ever quarterly profit in the April-June period, with operating revenue surging 71% to Rs 2,416 crore compared to Rs 1,414 crore in the same quarter the previous year. This growth is notably attributed to the success of Hyperpure.
Zomato’s shares closed 1.23% higher at Rs 111.20 apiece on the day of the announcement, reflecting the company’s diversified growth initiatives.
