This blog was penned by Sumeet Sorabh Gupta, AVP — New Initiatives at LoadShare Networks.
Quicker, quicker and quicker delivery! 2022 is going to be all about delivery in minutes and hours and not in days anymore.
The juggernaut of quick commerce (Q-commerce) driven by the huge infusion of capital & impressive growth rates by the incumbents like Swiggy, Grofers and new entrants like Zepto have led to a scenario wherein customer demand has been created where none existed even a few months back.
Based on a report by Redseer, India’s Q-commerce business is expected to grow by 10–15 times to 5 billion USD by 2025.
Opportunities rising up in the logistics sector…
Quick deliveries across product categories including daily essentials as well as premium products.
The biggest drivers for adoption of Q-commerce and e-grocery companies jostling for space in this already crowded space are impulse/unplanned purchases by households, shift in consumer demand from value seeking to convenience and Covid acting as a catalyst in changing consumer demands and behaviour.
What challenges do we foresee?
Fleet is going to become a critical factor as the demand for quick last mile deliveries is going up.
As companies try to survive in cut-throat competition with an aim to garner more market share, the biggest challenge Q-commerce companies face is of scaling up at an astounding pace compared to their competitors, managing their operational metrics, while aiming to achieve higher volumes and banking on consumer density to become profitable in the long run. Managing to hire, train and retain delivery fleet as well as dark store personnel is also going to be key, with most companies floating lucrative incentives to stem attrition in a sector where it has been historically very high.
This is how LoadShare is contributing to the rapid growth of the logistics sector in the near future…
Strength in building and organizing the supply, to provide a golden combination of rapid expansion with performance to clients.
LoadShare being one of the first movers, has an inherent advantage considering its proven capability in fulfilment and grocery delivery for more than two years now with some of the largest e-grocery companies. With serviceability of more than 10,000 pin codes and availability of more than 12,000 bikers, LoadShare is well placed to help quick commerce companies scale up at a rapid pace, while providing gold class service.
While LoadShare focuses on optimizing picking efficiency, space utilization in the dark stores, cross-utilization of delivery fleet and implementation of best practices thus reducing doorstep returns, quick commerce companies can direct their energies towards rapid expansion with us, improving forecasting accuracy and flexing SKU’s. It has been observed that while implementation of 10–30 minute deliveries has been streamlined in Metros, penetration into Tier 2 and Tier 3 towns is still a big challenge. This is where partnering with LoadShare, which already has a regional presence with knowledge of the local challenges and best practices, can help scale up much faster, thus bringing quick commerce to the doorstep of Bharat.