Ecommerce logistics company GoJavas has announced that it will now start partnering with local traders like grocery stores, medical stores, and supermarkets. Economic Times reports that the logistics firm, which handles deliveries for Snapdeal, Jabong, Yepme, Paytm, among others, plans to work on local commerce.
As of now the project is operational in fifteen cities, and GoJavas plans increase this to forty cities by the end of this year. The company intends to work with businesses that have delivery needs in and around the city. This idea stems froym the 90-minute pick up that GoJavas launched recently.
The logistics company started its 90-minute pick up scheme for customers who wanted exchange or returns of their purchases. This move was revolutionary, as no other logistics service had this feature. Through this, it created a network of local businesses, which it plans to use for local commerce.
GoJavas, which was created by Jabong for its logistics, was recently acquired by Snapdeal. The ecommerce site recently bought a 20% share in the logistics company for Rs. 120 crores.
The report quotes Vijay Ghadge, Chief Operating Officer of GoJavas, who says that the plan is to operate a point to point model for businesses. Ghadge says they are planning to retain their 90-minute model, and will extend cash on delivery facility. GoJavas plans to add to its existing fleet of two wheelers for its delivery. Ghadge has said that they will be going in for a dedicated set of vehicles for heavy orders like groceries, which cannot be accommodated in two wheelers.
Delivery within a city is a different ball game when compared to delivery across the country. Particularly in the case of groceries, where the quantity and weight is greater compared to the products that are shipped for ecommerce sites.
GoJavas’ plan seems to be a move in the right direction. By creating a connect with local businesses, it will be able to strengthen its core, and expand suitably across delivery fields.
Most ecommerce players are looking to improve their logistics wing. Some, like Flipkart have an in-house logistics department. The customers’ need for super fast delivery has pushed sellers to come up with innovative and competitive tactics.
Logistics firms are well aware of their role in the booming ecommerce industry, and are coming up with new pitches to up the game against each other. Whether GoJavas will be able to make this system work is a question only time can answer. In the meantime, other logistics companies will do better if they can think up survival strategies to remain in the competition.
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