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Tag: Delivery Business

  • How Electric Vehicles are Changing E-commerce Delivery with Sustainable Solutions

    This article has been contributed by Sravan Kumar Appana, Co-founder & Chief Executive Officer of iGowise Mobility.

    The electric vehicle industry has made tremendous progress in the past 4 years in India, especially in the affordable 2-wheeler segment built for the middle class. During the same time, the e-commerce sector also made notable advancements in India and is currently growing at a rapid pace. According to publicly available data, the e-commerce industry will be responsible for 3.5% of India’s GDP by 2030.

    In today’s time, each quick commerce company is looking for ways to surpass its competitors, whether in terms of quality, speed, or other evolving demands of modern consumers. Major quick commerce players have shifted their focus from traditional ICE vehicles to advanced and innovative electric vehicles to overcome these challenges. Data shared by Stand.earth suggests that 50% of total carbon emissions are produced by last-mile deliveries.

    Given the push towards e-mobility and sustainability, players like Zepto and Zomato are transitioning towards EV solutions to mitigate the environmental issue. In fact, the recent EV100 Annual Disclosure Report shows that Zomato and Flipkart took the top spots among global businesses that have shifted to electric fleets as their mode of delivering goods. In this regard, let’s discuss how EVs are changing the e-commerce delivery landscape one step at a time.

    Shifting from TCO to TPO

    In the early stage of EV production, the product was popular due to its lower Total Cost of Ownership (TCO) compared to traditional vehicles. However, now businesses have started focusing on solutions that impact the environment and their pocket in positive ways. As a result, industries are focusing on Total Profit Ownership (TPO), which includes a broader market perspective, including delivery speed, comfortability of the rider, and reduced upfront cost.

    To achieve this goal and help e-commerce businesses, the Indian government launched various initiatives such as the FAME-II scheme and PM E-Drive scheme. Such schemes aimed at reducing the additional upfront cost of the vehicle through subsidies and financial support. 

    In India, around 14 cities are considered to be the most polluted ones, and transportation happens to be a key reason for this. Data shows that Indian transportation accounts for nearly 13.5% of the nation’s carbon emissions, majorly from vehicles running on roads.

    However, the wide adoption of EVs can mitigate this problem and curb the issue of navigating densely populated regions. To achieve this, the government is targeting to increase EV penetration by 2030. The latest data shows that in FY23, sales of EVs increased by 50% compared to the previous year, highlighting the increasing shift towards sustainable mobility.

    Balancing Cost Efficiency and Rider Comfort

    To make the busy lifestyle of urban people easier, e-commerce has updated new features like quick 10-minute delivery. This new feature has transformed the consumer’s experience to another level. For instance, platforms like Blinkit, Bigbasket, and Swiggy Instamart prioritize speed and convenience with the best quality, making it important for logistic levels to transform.

    Today, India is the most populated country in the world, and due to the compact size and agility of light EVs, they are quickly emerging as the best logistics solution for the e-commerce sector. Data suggests that due to peak traffic in major cities like Delhi, Bengaluru, Kolkata, and Mumbai, the nation’s economy loses INR 1.47 lakh crore annually. However, integrating LEVs into businesses, particularly last-mile delivery services and logistics, will not only improve their model but also reduce the operation timeline, building customer trust.

    Another challenge that riders often face is discomfort while riding bikes or scooters the whole day. Riding long hours could become comfortable if the vehicle is designed to prioritize comfort and agility. Modern light EVs are built for compactness, and narrow tilting trikes, in particular, boast of effective designs that can move effortlessly in congested areas. These user-centric designs make them ideal for quick pickup and last-mile deliveries. 

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    Improved Safety with Inclusive Mobility

    In the last-mile delivery business model, women are putting their best foot forward to tap into the economic and livelihood benefits it could bring them. To make their participation more convenient, they are seeking EVs with comfortable design and efficient performance. In addition, many EV manufacturers in association with e-commerce companies are offering women users EV alternatives like LEVs.

    In a progressive world, we can see women capturing all sectors with their talent and knowledge; whether it is a startup or owning a saloon, they are giving their best in showcasing their talent. However, in the delivery sector, they still have to rely upon their father or brother and to mitigate this issue, manufacturers have started innovating LEVs that offer the best stability and agility for carrying goods, reducing the risk of disbalance.

    The convenient design and performance of the vehicles are in turn promoting women’s participation in the e-commerce logistics workforce. Road safety is another issue of concern for delivery executives. According to the reports of the Ministry of Road Transport and Highways, in 2022, 168,491 lives were claimed in road accidents. However, by incorporating innovative technologies like anti-topple stability, advanced battery management, skid-resistant brake systems, and ADAS and cruise control systems, EVs can bring about a change.

    For instance, the world’s first twin-wheeler trike technology is inspired by the principles used in bullet train stabilization systems but adapted for road vehicles to enhance safety. This technology will reduce the risk of accidents during sharp turns or even on uneven turns, making them more convenient for riders, especially women riders.

    How EV Logistics is Matching Sustainability Goals

    India’s push for sustainability goals in logistics aligns with achieving net zero carbon emissions by 2070. To achieve this goal, the government has started working on models, including the low-carbon development of electricity systems.

    In addition, it is putting efforts into promoting the wide adoption of urban designing and smart technology, the development of integrated and innovative transportation, the development of low-emission industrial systems, the development of carbon dioxide removal, and solving the financial needs of low-carbon developments. The government has also launched various schemes in all these sectors to achieve this goal and 

    According to reports, it is projected that EV sales can surge up to 35% by 2030. Reports also state that shifting toward EVs by 2050 could save India 70 million tonnes of oil, reducing the nation’s carbon emissions. 

    In these ways, EVs are changing the e-commerce delivery segment and encouraging a shift to a sustainable future. As India moves towards sustainable development, wide adoption of EVs will largely benefit the e-commerce sector, improving the overall GDP of the country.

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  • Zepto Aims to Raise the IPO Size by $800 Million to $1 Billion

    According to a media outlet report, Zepto, a quick commerce startup, is thinking of raising the amount of its initial public offering (IPO) to between $800 million and $1 billion, including secondary shares.

    The company’s intentions for a public offering, which include an expected $5.5 billion in gross sales for the last quarter of FY26 with positive EBITDA (excluding ESOPs), were recently discussed by CEO Aadit Palicha with large mutual funds. According to the article, which cited brokers, this estimated amount is approximately equal to the rapid commerce industry’s total gross sales for the prior calendar year.

    In mid-2024, the corporation started preparing for its initial public offering (IPO), initially aiming for $450 million in primary capital. The business is considering a range of at least $800 million or more, according to a source cited in the paper. This includes an enhanced primary fundraise and the possibility of selling at least $300–400 million worth of shares in an Offer for Sale (OFS).

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    By surpassing 900 dark stores, Zepto has surpassed expectations and is aiming to reach 1,000 locations. This development is a component of a larger plan to concentrate on growing the company and guaranteeing profitability. At the moment, Zepto receives between 1.1 million and 1.3 million orders every day. Sales of non-food items such as clothing, electronics, and miscellaneous merchandise now account for INR 200 crore of the company’s monthly revenue.

    Increasing its domestic ownership is one of Zepto’s other main objectives. Prior to filing for its IPO, the company wants to have at least 40% of its shares held domestically. Zepto is moving its domicile to India as part of this process by combining its Singaporean parent business with an Indian organisation.

    Zepto’s IPO

    With plans to add more firms closer to the offering, Goldman Sachs and Morgan Stanley are among the lead banks for Zepto’s initial public offering. As it competes with rivals like Flipkart Minutes, Blinkit by Zomato, and Swiggy Instamart in the quickly expanding industry, Zepto secured $350 million in a financing round in November 2024, increasing its total cash reserves to almost $1.4 billion. Although Zepto’s IPO pricing is still up in the air, the firm is thinking of comparing its KPIs to those of Blinkit.

    Zepto has lost a lot of money despite its expansion, spending between INR 1,000 and 1,100 crore in the previous three months to fight with its main rivals. According to the various media reports, Zepto’s high burn rate helped it grow its network of dark stores in both existing and new areas, bringing its gross sales to $3 billion, just below Blinkit’s $3.7 billion. Although it too experienced an adjusted EBITDA loss of INR 103 crore, Blinkit claimed a 120% year-over-year rise in gross order value for the December quarter, hitting INR 7,798 crore.

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  • Magicpin Reduces the Platform Charge to INR 5 for Each Shipment

    The hyperlocal e-commerce site Magicpin has lowered its platform fee to INR 5 per delivery in an effort to lower customer costs. This puts it at half the price that Zomato and Swiggy, two of its main rivals, charge. The decision was made at a time when many delivery service companies are raising their prices.

    Move Can Boost Company’s Sales

    Compared to its former INR 7 price, Magicpin’s new INR 5 fee represents a considerable savings of about 29%. Notably, the cut contrasts sharply with recent fee hikes by big food delivery companies, such as Zomato, which increased its platform cost from INR 7 to INR 10. Swiggy followed Zomato’s lead and increased their platform cost from INR 6 to INR 10. 

    Thus, by implementing this technique, the business is gaining an advantage in the race for quick commerce, and this step is undoubtedly aligned with attracting more users to Magicpin’s platform.

    Company’s Oder Book Increases by Two Fold

    Anshoo Sharma, the CEO of Magicpin, made the announcement on X (previously Twitter). Additionally, he gave users his word that the reduced fee would last until the end of 2024.  Sharma underlined that this action was a part of a commitment to strike a balance between the demands of delivery workers and customers, enabling more people to enjoy their shopping experiences during festive times.

    After this, Magicpin reported that, in comparison to the prior year, the company’s orders during the Diwali season doubled. Magicpin deviated from the norm this Diwali by making some firm platform pricing choices. As a result, during the long Diwali weekend, over half a million orders for festive food and love and support were received! This is twice what the business accomplished the previous year. “We appreciate Magicpin customers and have made the decision to stick to Magicpin Promise for the remainder of the year,” the firm announced, quoting Anshoo Sharma.

    Beyond just food delivery, platform fees are also rising in industries like fashion and general e-commerce, making online shopping more and more costly. Little handling fees are also charged by BigBasket and Licious, although their shipping costs are cheaper at INR 15 and INR 39, respectively. The total cost of internet shopping is increased by these extra fees, which occasionally go unnoticed by customers.

    What Magicpin Does?

    Anshoo Sharma and Brij Bhushan co-founded Magicpin in 2015, and it is a significant player in hyperlocal retail. The platform thrives in the age of technology and fosters mutual development by connecting businesses of all sizes with customers. Magicpin becomes a major player in the ever-changing world of online commerce by employing innovative solutions to improve the shopping experience. Users of this online location intelligence platform can find nearby eateries, retail establishments, spas, and fitness facilities. With its headquarters located in Gurgaon, Haryana, Magicpin allows brands and merchants to interact with their customers and offer them customised deals.

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  • Why Female Delivery Agents Are Scarce and Top Companies Hiring Women Riders

    Before the industrial revolution, women were effectively excluded from well-paid high-status occupations. This was due to the lack of access that women had to higher education. A case in point was Cambridge university which only fully validated degrees for women in late 1947.

    The change has long been coming and the largest growth has happened in the 20th century. The labour market shifted as more women sought higher education and entered the workforce.

    Specialized higher professions saw women becoming doctors, lawyers and scientists and carving out long-term and successful careers for themselves. It has been a boon for the industrial society as governments realized that women in the workforce contributed to a higher GDP by increasing the labour supply in the country.

    The 2001 World Bank report titled “Engendering Development” clearly states the connection between women’s involvement in the economy and the resultant growth –

    ‘While disparities in basic rights; in schooling, credit, and jobs; or in the ability to participate in public life take their most direct toll on women and girls, the full costs of gender inequality ultimately harm everyone…ignoring gender disparities comes at a great cost—to people’s well-being and to countries’ abilities to grow sustainably, to govern effectively, and thus reduce poverty.’

    Gender vs. Profession
    The Delivery Service Industry
    The Companies That Are Empowering Women Delivery Riders
    The Friendly Changes in the Delivery industry

    Gender vs. Profession

    There are a wide number of economic, social and cultural variables that impact gender distribution in a different occupation, within a particular region or country or even in a society as a whole.

    As a result of gender clustering, women and men often participate in economic sectors in sharply different proportions. Professions which are demanding physically or require physical strength are, traditionally, considered male-centric. Recently, this view seems to be shifting, albeit slowly.

    The Delivery Service Industry

    This is a part of the service industry and does exactly what it says. It delivers everything from mails, packages, food etc for commercial and consumer use by road, ship and air.

    There are deliveries via specialized networks as well – e.g., pipelines for liquid goods and power grids for electrical power. It is a fundamental necessity of trade and commerce. Like every other industry, the delivery service industry has also seen changes over the years, and more so in the post-pandemic world.

    Delivery Agents

    Typically, it has been considered a male domain job, until recently. Challenges such as longer schedules, lack of adequate restrooms, unavailability to own vehicles, incomplete documentation and the risks associated with visiting strangers and communicating with them have hitherto kept women from taking up such jobs. The industry has a dismal 1% of its total delivery agents as females.

    What is Changing?

    Paradigms are shifting. Ideologies are changing. And ground realities are changing. Delivery companies are facing higher attrition. According to one estimate by a staffing solutions company, the delivery industry has a very high attrition rate of almost 8% per month.

    There is a rush to hire women delivery agents at India’s leading online delivery companies. There are several reasons for this demand.

    • There is a need to rapidly ramp up manpower.
    • Women have a better retention rate.
    • Women are seen as more efficient and disciplined.
    • Women are also highly focused.
    • There is a demand to improve diversity numbers.

    The Companies That Are Empowering Women Delivery Riders

    Ecom Express

    Ecom Express Female Delivery Agents
    Ecom Express Female Delivery Agents

    Ecom Express has about 2000 women working at its delivery hubs and about 100 women are in active delivery roles. The company currently has women-delivery facilities in Delhi, Ludhiana and Jaipur and aims at starting ten new all-women centres in the country this year.

    The Chief People Officer of Ecom Express, Saurabh Deep Singla says – “Hiring women riders is one of our several efforts to strengthen the participation of women in the workforce. We hire women not just to improve diversity numbers but because their retention rate is higher. Women associates are sincere, diligent and highly focused and they are also very efficient.”

    Shadowfax Technologies

    Shadowfax Technologies Female Delivery Agents
    Shadowfax Technologies Female Delivery Agents

    Shadowfax Technologies is another delivery company that works with online marketplaces like Flipkart and BigBasket and employs around 6500 female delivery partners. This constitutes approximately 60% of its entire workforce.

    Says Abhishek Bansal, the CEO of Shadowfax Technologies – “We are witnessing a growing demand for women as delivery partners with a considerable increase month-on-month across tier-1 and tier-2 cities and intend to grow this multifold. The entire hyperlocal delivery segment is contributing significantly to the increase in demand.”

    Swiggy

    Swiggy Female Delivery Agents
    Swiggy Female Delivery Agents

    Swiggy is another company that is taking an active interest in attracting female delivery agents to its last-mile fleet.

    It is allowing delivery by bicycles for short distances. The food delivery startup is exploring partnering with electric mobility partners to facilitate electric cycles and bikes for rent.

    Swiggy currently has 22% of its female delivery agents delivering on bicycles. Mihir Shah, Vice-President of Operations says – “Several women either lack access to personal motor vehicles or don’t have a driver’s license.”

    The Friendly Changes in the Delivery industry

    Although delivery companies have realized the importance and value of including female delivery agents, there is a need to make some drastic changes in policy in-house, to make the eco-system more women-friendly. Some steps implemented by the companies to attract more women to join their workforce are,

    • Access to hygienic restrooms.
    • Allowing menstrual leave.
    • Various safety measures to safeguard its female delivery agents.
    • Providing safety training.
    • Designing and implementing SOS alert System.

    Conclusion

    Women are ready, able and willing to take on such roles. It is the industry at large that has to overcome its gender bias. It is the industry that has to create a working atmosphere that is women-friendly. It is the industry that stands to gain maximum but making these shifts and allowing women within its folds.

    FAQs

    Why are female delivery agents scarce?

    Lack of adequate restrooms, unavailability to own vehicles, incomplete documentation and the risks associated with visiting strangers and communicating with them are some of the reasons why there are fewer women riders.

    How are companies encouraging women riders to join their delivery fleet?

    As many women lack their own vehicles, Swiggy is allowing delivery by bicycles for short-distance orders.

  • Don’t Go Outside, Dakoo Is Coming!

    Insights shared by Avkash Kumar, Founder & Director, Dakoo.

    Understanding the market’s need, Dakoo, a hyperlocal marketplace & delivery platform founded by Mr. Avkash Kumar in 2021, is dedicated to bringing the latest technologies to the market. What started as a modest beginning for Avkash Kumar in 2021 during the ideation phases of his hyperlocal eCommerce platform, to what the nation is going to recognize soon as a tech franchise brand “Dakoo”, – his journey has traversed many complexities of a true entrepreneur. In 2021, 2x start-up founders Priyam and Avkash, two IIT Kharagpur alumni, sowed the seed of a hyperlocal marketplace & delivery platform Dakoo, with the mission of empowering local businesses.

    Priyam and Avkash - Founders of Dakoo
    Priyam and Avkash – Founders of Dakoo

    Dakoo is looking to provide a superfast home delivery ecosystem just like Zepto. They have fast-growing start-up founders, just like their brand vision, with big dreams of getting into every Indian’s life and city, not only metro cities. Following the “Vocal for Local” motto of our honourable PM, Dakoo is also looking to decentralize the e-commerce industry by empowering the local vendors of India.

    Dakoo Tech Franchise allows small businesses to own recession-free tech businesses in their city and be a part of an exciting and innovative movement. When each city has its own eCommerce platform, local vendors can easily sell their products online and this will ultimately strengthen the local economy. With the advent of the franchise model, Dakoo is committed to bringing this technology to every city and town in India to help small businesses and entrepreneurs to grow exponentially especially considering the post covid situation.

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    India is a country with many cities. There are tier-one cities like Kolkata, and Mumbai; tier-two cities like Surat and Jaipur, and tier-three cities like Mangalore. India is predominantly a rural country, but people from tier 2 and 3 cities migrate to bigger cities for education or job opportunities. This leads to the unavailability of many employment opportunities in these smaller towns, which is a big problem for those staying there. Dakoo will provide thousands of employment opportunities in these areas in the near future by empowering the local economy. In India, 60% of local retailers are not digitally enabled.

    Dakoo Tech Delivery
    Dakoo Tech Delivery

    Out of the massive $1.1T Indian local retail market, more than 90% of FMCG sales take place through local retail. India has almost 86% of consumers who shop locally. Thus, statistically, most e-commerce players are projected to prefer Dakoo’s logistics service over other players because it can be scaled up with less cost. Dakoo’s business model is all about ensuring that small entrepreneurs get enough orders to sustain their businesses who are suffering from daily orders due to the easy accessibility of big Indian eCommerce giants.

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    How Dakoo Solves The Problem?

    Startups and small businesses face a lot of challenges. And while there are programs to help, they don’t solve one of the entrepreneurs’ biggest challenges: Time. Dakoo looks to help small businesses across multiple industries with marketing and sales services through an easy-to-use digital platform. To ease out ventures like start-ups and small businesses, which face a lot of challenges, Dakoo Super App brings in an entire framework of apps for Customers, Merchants, and Delivery agents with regular updates. This helps to enhance product quality as well as customer experience. Dakoo offers free home delivery from any local shop, whether it’s a vegetable shop, Grocery store, Restaurant, Thela, Electronics shop, or Supermarket. All deliveries are completed within 25 minutes by Dakoo’s super-strong delivery ecosystem. Dakoo plans to reduce this delivery time to 15 minutes by the year of 2023. Bringing this kind of comforts and privileges of metro cities to tier 2 and 3 cities, while competing in tier 1 cities simultaneously, is the goal of the super app. Dakoo also plans to bring an electric vehicle hailing platform to tier 2 & tier 3 cities in the near future. The company has a dedicated team of professionals who work hard to ensure that its products can meet customer expectations. They also provide a Franchisee App, which helps handle the city monitoring and management dashboard. It also allows them to control multiple delivery agents through just one app.

    The best part that would give a boom is the system of making sure to keep track of all orders placed by various customers using different delivery partners. It enables them to maintain high transparency throughout their entire business process. Apart from ensuring that they deliver the best services to their clients, they have made sure that they can make payments easily and quickly without any issues or delays. This helps them achieve maximum productivity without compromising service quality or efficiency levels. Dakoo also offers digital marketing services such as Digital Marketing, guerrilla marketing & branding material, Marketing pitch, onboarding & training Videos for merchant & delivery agents, the Initial level of Customer support, Merchant support & Delivery Agent support. This helps businesses gain visibility online, thereby increasing sales volume significantly.

    Grow your Sales using Dakoo
    Grow your Sales using Dakoo

    Want to Operate with Dakoo? Know How!

    Dakoo was designed to help entrepreneurs reduce costs and complexity. If you wish to use Dakoo you have to follow these steps.

    • You can Hire delivery agents who will be paid per delivery directly via the app.
    • Convince Merchants in your city to join Dakoo, using our marketing pitch video.
    • Conduct offline marketing & branding campaigns with materials provided by Dakoo.
    • Manage delivery escalation & feedback improvements.

    You will be responsible for any and all taxes and fees related to your business, as well as complying with local laws and regulations. This includes VAT, corporate tax, income tax, and more. You will also be responsible for any legal liabilities or other financial commitments that may arise from running your business. Make sure you comply with all applicable hiring laws and regulations, as well as labour standards. Protect your data by complying with all applicable data protection laws. And finally, make sure you are compliant with all intellectual property laws. The company recently took 10,000 interviews and going to award franchises to top 100 entrepreneurs.

    Dakoo award franchises to top 100 entrepreneurs
    Dakoo award franchises to top 100 entrepreneurs

    Growth Plans and Future Roadmap

    Dakoo’s service is growing in popularity among local entrepreneurs and small businesses. The company is focusing on building a system that can grow alongside them. In the next few years, they hope to leverage artificial intelligence to create a single platform where eCommerce and digital marketing are closely tied together. Dakoo recently secured INR 2 Cr from the Founders of FlyDining, helping them complete their vision of digitizing the local market. The investors, Mr. Pankaj Dhingra, Mr. Samir Dhingra and Mr. Shubham Singhal, have shown faith in the business model of Dakoo and invested for the better future of India.

    Being open to co-branding opportunities with EVs and looking to launch in tier 2 and 3 cities, Dakoo is all set to become an important part of how thousands of local business owners run their online operations. As soon as small businesses grow beyond local exposure and word-of-mouth promotion, it’s time to map out a growth strategy. Ideally, that means creating a set timeline based on specific milestones. Without these milestones ahead of time, it can be difficult to make smart decisions about how best to spend marketing dollars down the road when cash flow becomes an issue. If money is tight right now, consider scaling back advertising costs temporarily until revenue hits another level again. Here’s where all Dakoo will serve as a real Dakoo, for as a good one, for thousands of entrepreneurs and their businesses!