The Race for 'Speedy Delivery'

The Indian e-commerce space is currently at an inflection point and there is tremendous opportunity for growth. With the increasing consumer demand for ‘fastest deliveries’, e-commerce giants are enhancing logistics services to make the delivery race more predictable than maddening.

- Twinkle Sahita

For a consumer, it is just a simple process of ordering online and getting it delivered at their doorstep. But there is complex logistics process involved behind the ‘click and get it delivered’ model.

From building necessary infrastructure for the storage of goods to revising operating models for robust growth, Indian e-commerce market has evolved a long way in improving the productivity levels.

Such is the impact of the booming e-commerce market that Chinese e-commerce giant Alibaba plans to enter the Indian market. It has held talks with a number of start-ups before its India foray. However, its main partner is likely to be its biggest investment in India, Paytm. It has also held talks with business-to-business (B2B) players, logistics companies, and technology start-ups.

According to the CII report on e-commerce industry in India, currently the total e-commerce spend in India accounts for less than 2 percent of the total retail spending. But it has still become a key driver to create new markets in erstwhile unreachable geographies.

With the expanding online shopping market, e-commerce giants such as Amazon, Snapdeal and Flipkart are now making their lives easier by looking at efficient logistics services. Flipkart has partnered with Map My India, Blackbuck and QikPod to strengthen its logistics arm; Snapdeal invested in GoJavas last year while Paytm invested in LogiNext. In July, it was reported that global logistics service, Aramex has invested in Mumbai-based logistics service Grab.in and Jaipur-based Logisure, to strengthen its last mile delivery service for the Indian e-commerce segment.

At present, the country’s logistics industry is worth $300 billion, according to the ‘Logistics Market in India 20152020’ by market researcher Novonous. In fact, the report states, Indian logistics market itself is estimated to grow at a CAGR (Compound Annual Growth Rate) of 12.17 percent by 2020.