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Xtreme by Zomato, Redefining the Game in Hyperlocal Logistics

Zomato Takes on Dunzo with Xtreme, Your Intracity Delivery Solution

13 October 2023

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Kunal Tyagi

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  • Zomato has introduced Xtreme, a hyperlocal delivery service leveraging its 3 lakh-strong two-wheeler fleet.

  • Xtreme competes with services like Dunzo, offering intracity delivery for small parcels up to 10 kg.

  • The pricing starts at Rs 25 for the first kilometer, making it a cost-effective option for businesses and individual users in various cities.

In a strategic move, Gurugram-based food tech giant Zomato has introduced Xtreme, a hyperlocal delivery service that leverages its extensive two-wheeler fleet of over 3 lakh delivery executives. This innovative service, which was launched recently, aims to cater to both small and large merchants in nearly 750-800 cities where Zomato already provides food delivery. Xtreme operates through a separate app and focuses on delivering small packages intracity, similar to the services offered by competitors like Shadowfax, Porter, and Loadshare.


Xtreme is designed to serve not only businesses but also individual users, thereby putting Zomato in direct competition with popular operators such as Dunzo, Swiggy, Uber, and Ola. This new service allows users to send small parcels weighing up to 10 kg, encompassing a wide range of items, from documents and medicines to groceries, apparel, cosmetics, and more.


The pricing model for Xtreme starts at Rs 25 for the first kilometer of delivery, with costs increasing for each additional kilometer. It's important to note that this pricing does not include the goods and services tax (GST) component, as Zomato declined to comment on these specifics.


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Zomato's foray into the intracity logistics space for small parcels comes at a crucial time, especially with the challenges faced by Dunzo. Zomato's strong presence in various cities across India might work to its advantage, making it a preferred choice for small merchants looking to expand their delivery capabilities. However, the situation may vary in larger cities, where swift deliveries are crucial, and competition is fierce.


This strategic move aligns with Zomato's goal of diversifying its revenue streams. In addition to food delivery, the company now offers a logistics service that enables merchants to send and receive parcels easily. Xtreme simplifies the entire delivery process, allowing merchants to track their shipments in real-time, enhancing the overall customer experience.


The Xtreme app is currently available only for Android users, with no confirmation of an Apple version yet. This service has the potential to disrupt the hyperlocal delivery space and compete with players like Swiggy Genie, Dunzo, and other local delivery services. Zomato's extensive delivery network and innovative approach make Xtreme a significant player in the evolving landscape of hyperlocal deliveries, promising convenience and efficiency to both businesses and consumers.


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