In another report on India’s e-logistics sector, Redseer Strategy Consultants has established that the industry is now one of the largest and fastest growing logistics markets globally. The report said the industry is soon going to become worth USD 9 billion, growing at a CAGR of 35%. The number of e-commerce logistics shipments is expected to grow by four times in the next five years.
The Redseer report states, “Thanks to new-age tech enabled players who have entered India’s logistics arena, it is now easier for small- and medium-sized businesses to transport goods, and there is a drastic increase in the speed and efficiency in which parcels are delivered.”
Among such players, Delhivery is well positioned at the cross-section of the various logistics sector growth drivers including infrastructure, offline commerce, digital consumption, and adoption of technology and data sciences. It can be said beyond doubt that India’s logistics sector owes much of this steep buildout to the e-commerce boom in India, including its various sub-sectors, along with the extreme penetration of mobiles, internet technology and localisation of content in non-metro regions. This has created a new demand for e-commerce, the ripples of it disrupting the logistics sector as it was.
It also would be wrong to not give enough importance to the variety of payment options available to the end user, when we consider the factors of this growth. According to the report, availability of multiple payment options such as UPI, no-cost EMI, BNPL (buy now, pay later) etc. are further driving the adoption of digital commerce, thereby, creating a demand for e-commerce and thus, e-commerce logistics.
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, the report mentioned.