Ecom Express enhances network with 600 delivery centres & 10 hubs; Expansions to continue for 2yrs

Last, when we checked up on Ecom Expess, it was in search of expansion funds. The ecommerce logistics provider is looking for $75 million to enhance its delivery network. But according to recent reports, by the end of March, Ecom Express introduced 600 new delivery centres and 10 hubs to cater to an additional 6000 pin codes in Maharashtra, Gujarat, Punjab, West Bengal and Bihar. This is all part of its full-state coverage program.

What does Ecom Express want to achieve through expansion?

Besides creating employment, Ecom Express wants to extend ecommerce courier services to the large consumer base in remote and rural areas of the five above mentioned states.

The company CEO and co-founder, T.A. Krishnan, said, “It is extremely difficult for ecommerce companies to reach the interiors of India where demand is picking up. While it is relatively easy to cover the metros and tier-I cities, expanding logistics coverage to smaller towns and villages will always remain a challenge and we have been very successful in putting sustainable solutions around this.

Our strategy is to rapidly increase our footprint in interior locations to drive ecommerce volume growth. We are looking to implement full-coverage in another five states by the end of the year taking it to a total of 17 States.”

Competitive expansion

During the last four years, Ecom Express has consistently and strategically expanded. It has increased the scale of operation, invested in infrastructure, automation tools and technology for operational leverage and sustainable unit economics.

Krishnan stated, “As a reliable logistics partner, all that we are doing is building capabilities in offering end-to-end logistics solutions for the Industry with deeper engagement and collaboration in driving the ecosystem growth.”

That said, the ecommerce logistics assistor is also planning to stay ahead of competitor Delhivery with its network building efforts. According to the director and co-founder of the company, Sanjeev Saxena, Ecom Express plans to launch 7 large hubs and 20 small and medium warehouses soon. The objective behind this is to connect India seamlessly and reduce transit time substantially.

Past

Prior to its 6000 pin code expansion, Ecom Expres managed 1,200 delivery centres and 33 transit hubs, as per its website. And, before the expansion, it covered a total of 11,000 pin codes. It covered 90% of the households within the 1,200 towns and cities it catered to and managed 200,000 orders a day.

Present

Together with the new pin codes, the company is able to deliver to around 17,000 pin codes in the country.

Future

In the coming two years, Ecom Express would like to service 20,000 pin codes in about 3,000 towns and cities.