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Logistic Industry - Growing pressures on the online courier services

Author: Priya Seoni
by Priya Seoni
Posted: Nov 28, 2019

Three things have put pressure on the online courier services – "Ease of doing business" in India, second as a result of the first one growth of SMEs in India and last but not the least the growth of the e-commerce industry.

India was ranked 142nd in 2014 and has jumped to the 77th position as per World Bank's 'Doing Business' 2019 report. Though there is still a long way up the ladder India has come a long way.

With reforms and digitization India has made starting a business much easier. Government has initiated many steps to grow start-ups by Make in India campaign like:

  • Start-up India Yatra

  • Start-up ranking framework

  • Full integration of multiple application forms into a general incorporation form.

  • Simplified post-registration procedures

  • Improved electronic platforms or online services to know more about any industry

  • All sales taxes unified under the Goods and Services Tax (GST).

India has created an ecosystem for the growth of many start-ups. According to Inc42 Data Labs - 637 unique start-ups were founded in 2018 and over $11 billion were invested across 743 deals. As a result, we now see a lot of SMEs (Small and medium-sized enterprises) growing in India.

As per the National Institution for Transforming India), Government of India report on "Indian Logistics Sector: On the Path of Transformation", by 2020 the annual revenue generated by the logistics industry would reach up to $215 billion.

Together all this has put a lot of demand pressure on delivery services. How pick-up and delivery services are dealing with this pressure is also to look for. They leverage technology to meet customer expectations for experience as well as convenience. Below is how they are trying to reach the customer delight by providing exceptional services through innovating ideas.

On-Demand Deliveries

Delivery services are the backbone of the economy and with the economy seeing a rise in SMEs, it has put a lot of pressure on delivery services to be available as per customer/business needs. Because of digitization most of the Indians are now online and want to book courier online and they want the services of the delivery services to be available as and when they need including holidays. For example, Pidge, one of the delivery services in Delhi NCR, is available 7 days per week even on holidays and you can schedule courier pick up anytime in the future.

Clear delivery times

The delivery services are catching up with the fact that it is not only about convenience but experience too. No customer likes ambiguity. Delivery services now provide clear delivery times. For example, if you have requested a courier pickup from home then the courier app will show you the exact time the delivery executive will come to pick the courier from your place.

Shorter delivery time

Not only have the courier apps providing the delivery time but they are trying to cut down the delivery time too. The businesses demand fast courier service. With multiple options to explore customer loyalty holds with the service that is the best as well as the fastest. There are on-demand delivery services that provide as fast as 60 minutes guarantee courier pick up.

Route mapping

To ensure that the deliveries are the fastest the delivery services ensure that the best route to the location is picked. Once the user has a book courier online, the order is assigned to the delivery executive. The delivery executive then is routed to the location with the fastest route to reach in time.

Same day delivery

Why are the shorter delivery time and route mapping essential? That’s because with the fastest moving pace customers in intra-city delivery options seek same day courier service. Many local businesses rely on short distance deliveries and if the delivery is not one day delivery the business may lose its customers. For example, if you enter requests using the Pidge app you get 60 minutes courier pick up with instant same day delivery.

That was all about the experience, but many online courier services have leveraged technology to add convenience factors in the life of their users especially SMEs. As per SME Pulse 2019 - Oxford Economics, not all business products or services of the SMEs depend on technology. However many SMEs now see technology as an essential tool to improve business value. Technology stands out as a concern today and a priority to improve over the next three years. Technology is seen as an opportunity which most of the SMEs want to work upon in the next three years. Seeing technology as a valuable investment from 39% to 75% SMEs are planning to apply the latest technology to their business.

Get the price online before ordering

When a user book courier online the system calculates the pricing from the pick up to the drop location. The user can decide before placing the order.

Online status with delivery tracking

The online service includes the ease to track where your order is and even where your rider is. GPS installed in rider apps reflects the same on the user app. On apps like Pidge, you can track your rider from the moment you submit a request for courier pickup from home and keep tracking it LIVE although the delivery location.

Message/App notification

These apps also push SMS as well as notifications indicating that the rider is on his/her way for delivery to avoid chaos or unavailability of the receiver or sender.

Cashless

Post-2016, the majority of the apps have cashless payment options. Like Pidge app (Android, Apple) that does not provide cash on delivery supporting the vision of the prime minister of a cashless.

As per SME Pulse 2019 – Oxford Economics, In India itself the confidence in the global economy has increased from 45% to 68% from 2017 to 2018. This is a sign of more business growth in India leading to increasing pressure on logistics.

As per the Economic Survey 2017-18, "The Indian logistics sector provides a livelihood to 22 million-plus people and improving the sector would facilitate a 10% decrease in indirect logistics cost". The Survey also estimates in the next 2 years the Indian logistics market would be worth US$ 215 billion (US$ 160 billion currently). The boom would need more innovation like same day courier service in terms of services as well as in terms of technology and improving customer experience further.

About the Author

Pidge is on-demand secure online courier service. We guarantee pick up in 60 minutes same day delivery immediately anywhere in Delhi Ncr. The package is delivered in unique tamper proof bags.

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Author: Priya Seoni

Priya Seoni

Member since: Nov 13, 2019
Published articles: 18

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