CARGOCONNECT JULY2024 - Flipbook - Page 11
Last-Mile Startups
From food delivery platforms
like Zomato and Swiggy, to
hyperlocal on-demand delivery
services such as Grab, Swiggy
Genie, Porter, Pidge, Whizzard
and major e-commerce players
venturing into hyperlocal delivery
segments like Amazon Fresh,
Flipkart Supermarket, BigBazaar,
Dmart, JioMart, and more, this
sector is witnessing a surge in
popularity and widespread adoption. Furthermore, enhanced
logistics services offered by
companies like BigBasket and
Grofers enable delivery within
a few hours from local stores.
Medicine delivery startups like
1mg, Medlife, PharmEasy, and
others address the challenge of
accessing medications and healthcare supplements. The rapid success of these startups is largely
attributed to their ability to ful昀椀l
consumer requests swiftly, facilitated by improvements in India’s
logistics infrastructure.
Delivery Ecosystem
Traditionally, the delivery ecosystem in India was dominated
by trucking, responsible for
transporting large shipments
and heavy goods to remote
areas. However, in recent times,
Q-commerce has revolutionised
the landscape, with small trucks,
minivans, and bike-guided delivery systems taking precedence.
Customers now demand faster
and more personalised service,
influencing their purchasing
patterns and directly impacting business operations. Consequently, e-commerce players have
witnessed a signi昀椀cant reduction
in delivery times. With a preference for minimal direct contact,
consumers increasingly opt for
home deliveries from hyperlocal
e-commerce providers or local
stores o昀昀ering delivery services.
This surge in e-commerce and
hyperlocal activity has sparked a
heightened demand for last-mile
deliveries.
Hyperlocal services boast a
high innovation quotient, continuously introducing new features
to retain user engagement. With
consumers accustomed to online
purchasing and immediate delivery, hyperlocal delivery presents
an opportunity for services to
streamline operations and gain a
competitive edge, thus expanding
their user base. Despite being
in their early stages, hyperlocal
startups stand to bene昀椀t as more
stores transition online, reducing
delivery ine昀케ciencies and minimising customer churn. These
factors significantly enhance
the prospects of hyperlocal and
last-mile delivery startups in the
competitive landscape.
While last-mile deliveries
pose challenges for e-commerce
and hyperlocal businesses,
advancements in technology
such as Artificial Intelligence
(AI) and Machine Learning (ML)
tools have facilitated efficient
and accessible solutions. These
innovations improve routing,
batching, demand forecasting,
and rider allocation, enhancing
delivery efficiency. Moreover,
strategically located distribution
centres and scalable warehousing
further optimise logistics, bringing products closer to consumers and rendering hyperlocal
delivery more sustainable than
ever before.
Demand for Warehouses
With the proliferation of
hyperlocal and last-mile delivery
startups, urban warehouses
have become indispensable for
ensuring timely logistics services
across urban hubs. These facilities, comprising logistics centres
or warehouses strategically
located in major city areas, aim
to minimise delivery times by
proximity to customers. Limited
storage capacity and escalating real-estate prices in urban
zones are compelling enterprises
to expand and optimise their
warehouse space. Warehouses
serve as crucial storage bu昀昀ers,
receiving goods from distribution centres and delivering them
directly to end customers. GradeA warehouses have emerged as
a primary solution, meeting all
necessary requirements, with
demand skyrocketing during
the pandemic and expected to
continue growing. In response to
the surge in demand, numerous
regional players are ramping
up efforts to construct new,
modern facilities. Anticipating
rapid expansion, developers
are acquiring land in prime
locations, including outskirts
of metro cities, to develop warehouse spaces.
The Outlook
As the market matures and
consolidates, startups, both
existing and new entrants, have
enhanced their comprehension of
consumer behaviour and re昀椀ned
their business models. Hyperlocal
delivery startups are increasingly
favoured by customers due to
their convenience. This trend is
fuelling a surge in acquisitions of
logistics and urban warehouses
in prime city locations.
