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One of India’s largest e-commerce and online marketplace Paytm is debuting its own delivery service through Ekart, the logistics arm of Flipkart. This move could potentially threaten other rival e-commerce giants in India in the fiercely competitive e-tail sector. Ekart has desired to showcase itself as an independent business rather than being entirely dependent on its only customer – Flipkart.
Such a business tactic is relatively new in India in a rival online marketplace is expected to boost prospects for Ekart, which is fashioning itself into an independent business while reducing dependence on a single customer — Flipkart. For Paytm, the move marks greater focus on reaching customers in smaller towns and cities which generate more than half of total orders. Ekart has demonstrated large warehouses to nearly 1.6 million square feet at the end of 2015 across 17 fulfillment centers, with plans to open eight more centers this year. It expanded its team by nearly half in 2015 and currently employs about 14,500 people.
"Ekart has the capability to transport over 5 lakh shipments from different sellers across India. We will be using the same capabilities to offer services to other companies," said Amitesh Jha, a vice-president of the Bangalore based Ekart.
India truly deserves to have a speedier and more effective delivery services for digital India to take flight. Only time will demonstrate how this rival approach works in real life.