THE E-COMMERCE BOOST

Logistics startups such as XpressBees, Shiprocket, and LoadShare are riding the e-commerce boom in India, delivering products and solutions across the country.

- By Ashutosh Kumar

IN APRIL 2016, Deloitte India's joint report with the Confederation of Indian Industry (CII), titled 'e-Commerce in India: A Game Changer for the Economy', projected that the Indian e-commerce industry will form the largest part of the internet market, commanding a value of $100 billion by 2020. The study attributed the growth projections to the emerging tech disruptions such as digital payments, hyperlocal logistics, analytics-driven consumer engagement, and digital advertisements.

Almost seven-and-a-half years later, in October 2024, Deloitte India again released a report saying that India’s e-commerce sector is likely to reach $325 billion by 2030, registering a CAGR of 21%. “This expansion is driven by increased spending from affluent and middle-class households. Government and private sector partnerships, along with strategic M&As, are crucial for this growth,” said the report. Looking at the industry from the vantage point of both the reports, the size of the industry is set to become threefold in the 10-year period between 2020 and 2030.

In fact, between 2016 and now, the rising e-commerce market has had a ripple effect on the economy and has provided a significant fillip to the tertiary sectors—MSMEs moving up the value chain, Software-as-a-Service (SaaS) platforms gaining traction, and logistics getting a makeover with new-age startups. In fact, logistics—synonymous with freight forwarding, courier services, transport and slow-moving railway wagons—has witnessed a complete metamorphosis from its earlier avatar to a technology-enabled, lightning-fast service, with the emergence of e-commerce. Disruptive business models powered by technology are being used by new-age logistics partners to cater to the dynamically changing needs of e-commerce businesses.

A few of these startups in the logistics space hopped on to the e-commerce bandwagon—some a decade ago—and have carved a niche for themselves.