Covid-19 Ups Demand For Efficient Last Mile Delivery And Intra-City Logistics

From making remote working a norm to bringing about a radical shift in the way consumers shop, COVID-19 is being regarded as a black swan event for the global economy. Even as traditional businesses took a hit due to the pandemic-induced lockdown, the changing landscape acted as a major catalyst for digital transformation across business and delivery models. COVID-19 accelerated the shift towards digitization as dependency on online services grew exponentially overnight. The Indian population was acquainted with the concept of last mile delivery or doorstep delivery over the last few years, whether it is food delivery or shipments from e-commerce platforms. However, the situation emanating out of the pandemic has given a boost to mass adoption of these services. Notably, small businesses which make up the backbone of India’s economy still have limited digital presence. It is estimated that only 20% of small businesses offer online services currently, leaving a large untapped market and infinite possibilities for the growth of logistics sector. The demand for last mile delivery services is likely to grow significantly in the coming years as greater digitization of businesses takes place. There is already a surge for on-demand and instant deliveries services across the Indian urban space. With logistics and delivery service providers brimming with orders, a strong need has been felt for technology-based instant last mile delivery models that can not only improve delivery speed but also optimise utilisation of resources, thereby improving unit economics. In fact, efficient last mile delivery has become a key determining point as far as customer satisfaction is concerned and all kinds of businesses are looking to provide last mile delivery. The on demand delivery industry is already disrupting traditional markets by adopting a full cycle approach to three essential components of a delivery experience: Ordering, pick-up and delivery. This will receive a further boost as businesses adapt to the COVID induced changes.

The e commerce surge and emerging need for last mile delivery Evidently, e-commerce was the most notable beneficiary of the COVID 19 induced transition of the economy. As more people preferred the safety of home delivery over personal buying, e-commerce platforms were flooded with orders. In India, where a large section of the population had still not adapted to e-buying, the post COVID period witnessed a rise in first-time-e-commerce-users. So overwhelming were the initial months of the 2020 lockdown that leading e commerce platforms such as Big Basket, Amazon and Grofers had to prioritise orders and request customers to bear with delays. According to market research company Forrester Research, e-commerce sales jumped by 7-8 per cent in India in 2020. Even though this jump was much less than in the US or Chinese markets, it does display a trend towards a shifting consumer behaviour. Growing e-commerce sector is