Flipkart’s logistics unit, Ekart, is set to introduce a Ekart courier service that will be similar to First Flight Courier and DTDC Express. It builds a consumer facing vertical in order to complement the main supply chain management business.
This courier service will help in bolstering the new positioning of Ekart as an independent logistics powerhouse alongside Flipkart that decided to hive off the unit in order to cater to other companies. The clients of Ekart include Paytm, Jabong and Madura Garments.
Ekart has come up aggressive plans for the courier service. It aims to capture around 5 to 10 percent of the market in one year. Ekart Courier that pegs that the consumer to consumer courier space is valued at Rs 2,200 crore. This excludes the value of over Rs 200 crore in one year by effectively squeezing more revenue for each delivery executive.
Amitesh Jha, the VP at Ekart stated that they expect that the service will be quite disruptive as Flipkart’s entry into the e-commerce segment. The industry is much unorganized and no one offers an end-to-end proposition that is needed by consumers.
Ekart is planning to enter the hyperlocal logistics market. It started piloting deliveries for the restaurants located in Bengaluru. This was claimed by a couple of people who knew about the company’s plans.
Ekart Courier will offer customers door-to-door pickup of the ordered parcels within 4 hours and the delivery will happen in two days. Those who want to book the service online and get SMS updates and real time tracking. The company will initially offer complimentary packaging.
The service of pickup will be introduced in Bengaluru next week and it will extend to 50 other cities by September. It will drop parcels at 3,800 pincodes across the country.
Jha added that it will be competitive to the courier players in the tier 1 cities. They will be offering more value for the same price.