Growth & Emergence of Steady & Fast Delivery
The COVID-19 pandemic has changed consumer behaviour and helped to catalysed e-Commerce, shifting people to shop online. It has helped the Quick delivery commerce market to expand its fleet to ensure supply to the increasing demand of the products. Quick commerce platforms which facilitate 10-20-minute deliveries are growing 20-25 percent faster in volumes than the ones which make deliveries in four-hour or longer. E-commerce showed strong acceleration with growth being largely fuelled by new emerging formats like quick commerce. Thence, India’s e-Commerce boom has led to the growth and emergence of several courier companies that cater to traditional businesses and households.
Multiple segments in the India logistics market are addressable by full-stack-tech- enabled logistics service providers. There seems to be great headroom for growth as tech-enabled logistics players venture into adjacent segments such as hyperlocal delivery, express delivery, trucking, and more. Over the last few years, quick delivery commerce has seen a significant trend in metropolitan cities of the country such as Bengaluru, Chennai, and New Delhi. The country has indeed laid the foundation for a well-positioned market for quick delivery commerce and its adoption.
The shift of the quick delivery commerce towards electric mobility is a significant sustainability initiative, especially for e-Commerce companies and a pioneering step for India’s electric mobility goals. Some Quick delivery commerce companies have already recognized EVs as a cost improvement measure, in addition to improving customer satisfaction and meeting regulatory compliance. EV adoption for quick delivery commerce will guide and inspire widespread adoption of electrified e-commerce in India.
The e-Commerce Logistics Industry is expected to flourish in India with rising demand from Tier-II and below cities (owing to higher internet penetration) and increasing consumer expectations for fast delivery services. This industry is expected to witness a CAGR of 23.6 percent in terms of revenue during the forecast period FY’2020-FY’2025F. Ongoing technological disruptions such as Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics and more which help in tracking Inventory and deliver products on time will gain higher traction in future. Expansion of Fulfilment Centres in Tier-II and below cities will increase to better serve the population in these areas.
Multiple segments in the India logistics market are addressable by full-stack-tech- enabled logistics service providers. There seems to be great headroom for growth as tech-enabled logistics players venture into adjacent segments such as hyperlocal delivery, express delivery, trucking, and more. Over the last few years, quick delivery commerce has seen a significant trend in metropolitan cities of the country such as Bengaluru, Chennai, and New Delhi. The country has indeed laid the foundation for a well-positioned market for quick delivery commerce and its adoption.
The shift of the quick delivery commerce towards electric mobility is a significant sustainability initiative, especially for e-Commerce companies and a pioneering step for India’s electric mobility goals. Some Quick delivery commerce companies have already recognized EVs as a cost improvement measure, in addition to improving customer satisfaction and meeting regulatory compliance. EV adoption for quick delivery commerce will guide and inspire widespread adoption of electrified e-commerce in India.
The e-Commerce Logistics Industry is expected to flourish in India with rising demand from Tier-II and below cities (owing to higher internet penetration) and increasing consumer expectations for fast delivery services. This industry is expected to witness a CAGR of 23.6 percent in terms of revenue during the forecast period FY’2020-FY’2025F. Ongoing technological disruptions such as Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics and more which help in tracking Inventory and deliver products on time will gain higher traction in future. Expansion of Fulfilment Centres in Tier-II and below cities will increase to better serve the population in these areas.
