Snapdeal, Flipkart may follow Amazon to expand reach via postal network.

BENFALURU: Online marketplaces Snapdeal and Flipkart could follow the Amazon’s footsteps and join the hands with India Post’s Bangaluru Chapter to provide the same day delivery for customer in the city, according to senior official in the postal department. The technology capital is the first city, where start post delivering packages to customer of online marketplaces Amazon on the same day if order is placed.

“The national postal service in an informal talks with Snapdeal and Flipkart who have responded positively to the metro for providing the same day delivering service,” Said” BS Chandrashekhara, Assistant Director for business development at the Department of Post, Karnataka Circle.

Since April, When the service for Amazon was launched, the department has been delivering an average of 2000 order daily in Bengaluru, according to the postal officials. The Bengaluru experiment is the pilot project for starting the service can make plans for rest of the country. Said MS Ramanujam, Cheif Post Master General of Karnataka, who said the results of this pilot project in Bengaluru will help the department draw up the similar project in other cities.

A spokeswomen for Snapdeal old ET that while the company is collaborating with India Post extensively for delivery at multiple pincodes, “it’s too early to speak about plans for metro delivery service.” Flipkart didn’t respond to email queries from ET.

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

Experts are of the view that India Post with its deep reach even in small towns, can become a formidable competitor as a full-fledged logistics company. “The e-commerce companies which are struggling to reach out to all pincodes will also find India Post the most credible option for last mile deliveries,” said Arvind Singhal, chairman and managing director of Technopak.

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,” said Amit Agarwal, vice president and country manager of Amazon India.

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 fro 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.

Source by ET


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