From a delivery timeline of 2-3 weeks to 90 minutes, on-demand delivery has changed the way ecommerce functions currently.
What’s helping on-demand start-ups to live up to the promise and deliver within few hours is technology.
Last Mile Delivery service providers
Last mile delivery service is the need of the hour. Hence, no surprises for guessing that many start-ups have entered the arena to make the most of the opportunity.
Hyperlocal delivery firms such as Opnio, Shawdowfax, Roadrunnr, Quickli, Grofers, and Parcelled are connecting merchants and buyers with the help of technology and an analytical mind. Their aim is to assist small businesses in making last-mile delivery as quick, efficient, and cost-effective as possible.
Abhinav Chaturvedi, a board member at Opinio revealed to ET, “The company that wins the market will be the one that uses technology and process optimization to shave off every additional minute of delivery time.”
Delivering at doorstep with the help of technology
Visiting local kiranas, general stores and food joints to buy things have been quickly replaced by startups that promptly deliver everything, from rice to razor at home.
These tech-enabled hyperlocal logistics startups use their expertise to track shipments, delegate tasks to delivery staff efficiently, meet peak-season demands and provide navigation tools for timely delivery.
While speaking about the dynamics of this service, Manish Saigal – MD of professional services firm Alvarez & Marsal said, “Hyperlocal delivery is a lot about productivity and resource planning; how you do your route planning, optimization of staff and dynamic zip coding.”
Grofers relies on sale technology integration to get live feed of the supply and fill any gaps on a real-time basis.
On the other hand, Parcelled’s Chief Technology Officer shared how they function, “We operate on a dynamic routing model, leveraging technology and data to create demand pockets and heat maps, which we use to optimise our delivery fleet time and costs.”
Investors readily loosening purse strings
Looking at the popularity of last mile delivery service providers, investors including ecommerce biggies aren’t shying away from showing their interest and pouring funds.
Take for instance, Gurgaon-based Shadowfax that managed to raise a whopping amount in a quick succession. The company raised $300,000 from Snapdeal’s Kunal Bahl and few others in August this year. In September, the start-up raised another $8.5 million in the Series A round of funding by Eight Roads Ventures. Opnio raised $1.3 million and $7 million in July and October, respectively.
Customers, start-ups, merchants and investors, all are happy with this business model. What more one can ask for?