LoadShare and top eB2C players — Integrations are the key to massive growth
In this blog, Krishna Ramkumar, SVP at LoadShare Networks reflects on the impact of COVID-19 on the logistics sector. He further talks about how integrations between tech-enabled logistics players and B2C players in e-commerce, food delivery and quick commerce are the key to unlocking exponential growth of this sector. Here are the excerpts -
Impact of COVID-19 on the logistics sector…
The COVID-19 pandemic has led to a large-scale acceleration in the penetration of e-commerce as well as steeper consumer expectations with respect to delivery timelines.
This has shone the spotlight on the logistics sector — which is arguably the most critical enabler for faster e-commerce penetration. I expect this to be a secular trend in 2022 and beyond.
We are excited about the opportunities which have opened up in this sector…
We are most excited about the multitude of opportunities in last mile delivery today. Food tech grew multi-fold during the pandemic with aggregators and cloud kitchens leading the way. The rise of quick-commerce (10–30 min grocery delivery) has reset consumer expectations with respect to speed of delivery in other sectors too.
E-commerce is feeling the pinch the most with same day and next day delivery expectations now being the norm. Several new brands are now also investing heavily in building D2C as their primary distribution channel, with the help of logistics partners to ensure reliable and speedy fulfillment.
With so much activity, the opportunity is ripe for tech-enabled logistics players to integrate with a host of B2C players and grow rapidly and profitably.
Challenges we should be wary of…
The holy trinity for hyperlocal logistics players like LoadShare is to provide our clients
1. Reliable fleet availability, at
2. reduced cost, with
3. exceptional customer experience
The challenge is to be able to rapidly scale up a pan India hyperlocal delivery fleet that serves multiple use cases (thus reducing cost) with a strong technological backbone that ensures great customer experience.
With the price of fuel going up swiftly, another big challenge for logistics players is to quickly transition their fleet from ICE to Electric Vehicles in order to be future ready.
Integrations between LoadShare and top food, Q-commerce and D2C players
LoadShare already provides hyperlocal services to the country’s top food delivery platforms — Swiggy, Zomato and Magicpin — through an active delivery fleet of 10,000+.
There is massive potential now to cross-utilise this same fleet by integrating with the top quick commerce and D2C players. This increased fleet utilization will significantly increase rider earnings (thus improving driver happiness) as well as enable us to provide an attractive cost proposition to all players to fulfill their hyperlocal requirements.