Based on a report released on October 31, 2022, India’s e-logistics sector has grown to become one of the largest and fastest-growing logistics markets in the world, with a compound annual growth rate of 35per cent.
In the next five years, the number of e-commerce logistics shipments is expected to quadruple.” Thanks to new-age tech-enabled players who have entered India’s logistics arena,” writes Bengaluru-based Redseer Strategy Consultants in a report, “it is now easier for small- and medium-sized businesses to transport goods, and there is a drastic increase in the speed and efficiency with which parcels are delivered.”
Among these players, Delhivery is well positioned at the crossroads of various logistics sector growth drivers such as infrastructure, offline commerce, digital consumption, and technology and data science adoption.
The eCommerce logistics sector has aided the overall growth of India’s logistics sector and enabled the country’s e-commerce boom.
The proliferation of smartphones and the localization of the internet in non-English languages is bringing new consumers from non-metro areas into the internet economy and creating new demand for online commerce, necessitating logistics disruption.
According to the report, the availability of multiple payment options, such as UPI, no-cost EMI, BNPL (buy now, pay later), and so on, is driving the adoption of digital commerce by more consumers, resulting in a need for eCommerce logistics.
“Full-stack logistics service providers can address multiple segments of the Indian logistics market.” There appears to be significant room for expansion as tech-enabled logistics players expand into adjacent segments such as hyperlocal delivery, express delivery, trucking, and others,” the report mentioned.