Leading ecommerce company Snapdeal is planning to fully absorb logistics firm GoJavas into its fold. Snapdeal’s logistics arm Vulcan Express is going to be instrumental in carrying out the plan. A person familiar with the scene said, citing anonymity,
“GoJavas has shut down centres in the South and West zones. An eventual consolidation of GoJavas and Vulcan is certain.”
Snapdeal had bought a 42% stake in GoJavas late last year. The union seems to be working for Snapdeal, as the company’s performance has gone up, says a source,
“Snapdeal is dependent on GoJavas as its efficiencies had improved after working with them. Vulcan absorbing GoJavas is a close possibility as the marketplace had invested in the team that built Go-Javas, with Ghadge (Vijay Ghadge, former COO of GoJavas, now COO of Vulcan) joining the latter.”
Amazon seems to be the bane of all ecommerce companies. The US based marketplace has set high standards in terms of service and logistics, which is putting pressure on the others. Snapdeal hopes that with GoJavas at its side, it will be able to better its logistics, thereby leading to a greater degree of success.
Snapdeal has also recently revised its terms in a bid to bring sellers closer. The company has brought down its marketing fees, tightened returns policy, and simplified the dos and donts for the sellers. Sellers seem to be generally happy with the changes (quite a contrast from Flipkart, which recently changed its seller policies).
GoJavas might start working exclusively for Snapdeal, said an anonymous source,
“Snapdeal and Jabong combined make up 85 per cent of GoJavas’s orders. As rates were marked up by GoJavas, Jabong has put them on a notice till July 30, following which GoJavas will be servicing only Snapdeal and a few other players like Zivame.”
Will the move help Snapdeal inch closer to the top? Maintaining a dedicated logistics arm would definitely help.
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