Top News

E-commerce giants Flipkart, Snapdeal may join hands with India Post to expand their reach

Soon, online marketplaces Flipkart and Snapdeal could follow in Amazon’s footsteps and join hands with India Post’s Bengaluru chapter to provide same-day delivery for customers in the city, reports the Economic Times, citing a senior official in the postal department. 

Soon, online marketplaces Flipkart and Snapdeal could follow in Amazon’s footsteps and join hands with India Post’s Bengaluru chapter to provide same-day delivery for customers in the city, reports the Economic Times, citing a senior official in the postal department. 

According to the report, Bengaluru is the first city where India Post began delivering packages to customers of Amazon on the day an order is placed. Amazon which was the first to partner with the postal department has “integrated its own technology with the postal service for same-day delivery in Bengaluru,” Amit Agarwal, vice president and country manager of Amazon India, was quoted in the report as saying.

“The national postal service is in informal talks with Flipkart and Snapdeal who have responded positively to the metro delivery service,” BS Chandrashekhara, assistant director for business development at the Department of Posts, Karnataka Circle, told the Economic Times. 

According to postal officials, since April, when the service for Amazon was launched, the department has been delivering an average of 2000 orders daily in Bengaluru. The Bengaluru experiment is a pilot project before the postal service can make plans for the rest of the country. “We are testing our own capabilities,” MS Ramanujan, chief post master general of Karnataka told the Economic Times. He added that the results of this pilot project in Bengaluru will help the department draw up similar plans for other cities. 

The Indian e-commerce market is expected to grow to $300 billion by 2030, according to a Goldman Sachs report, the. India Post will compete in a market where specialist delivery firms like Ecom Express, Delhivery and Go Javas are raising venture funding to expand operations.

India Post with its deep reach even in small towns can become a formidable competitor as a full-fledged logistics company, according to experts. With e-commerce companies struggling to reach out to all pincodes, India Post has emerged as one of the most credible options for last mile deliveries.

Delhi and Mumbai are next in line for India Post’s same-day-delivery, with limited pin-codes in Chennai and Coimbatore being covered at present. Fashion portal Myntra is also using India Post’s cash-on-delivery service on a pilot basis in Bengaluru.

The department prices same-day-delivery orders priced according to average charges for its speed posts service. The metro delivery service has contributed to 30% of India Post’s total revenue in the city in the last three months according to department officials. 

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close