The Indian Post is the world’s largest postal network with 1.55 lakh registered post offices. In the recent past, the Indian post had faced a significant decline in terms of volume of business. This was primarily due to the Internet. The internet rendered the traditional concept of writing letters almost obsolete. However, the same internet has now created a business opportunity that has been valued at almost 9 billion dollars for the same sector it almost destroyed a few years ago.
This opportunity has come in the form of “last mile” delivery for the booming e-commerce sector in India. Last mile delivery in the e-commerce sector refers to the dispatch of the goods from the warehouses of the E-commerce companies to the doorstep of the customer. It is that part of the delivery chain actually visible to the customer.
The Indian post is hoping to ccapitaliseon this opportunity by ensuring it provides the customers with a good experience. To do so, the Indian Post is boosting its infrastructure. It aims to introduce real-time package tracking facilities via satellites using a new and proprietary technology. The Indian Post will soon also start sending SMS updates regarding the delivery status of their parcel to the customer.
The Indian Post which already has a tie up with SnapDeal and Amazon will look to leverage its reach in rural communities so that local weavers/artisans will benefit from the booming e-trade sector in India.
The Indian Post has approximated the logistics division value to reach 9 billion dollars by 2021. To gain the first mover advantage in this segment it has already started to modify it vast array of utilities. The Indian Post has already started its work on a network of road transport for efficient parcel movement. The Indian Post is looking to tap into and eventually control the distribution and delivery arm of the E-commerce sector in India. The logistics arm currently constitutes approximately 12% of the E-commerce market in India.