Logistics has always been one of the major pain-points for Indian ecommerce companies as the space is dominated by traditional couriers like BlueDart and FedEx with little focus on online commerce. The business is capex heavy. But that doesn’t stop entrepreneurs from taking a crack at it.
Over the past year or so, the ecommerce logistics industry saw the debut of players like Chhotu and Delhivery, who are elbowing their way onto the table. However, their reach is limited to a few cities. A new startup to join the growing number of logistics players is Delhi based Deliver which offers end to end logistic services like packaging, labelling, last mile deliveries within the city and intercity deliveries, cash on and before delivery, warehousing among others. Currently, the startup serves Delhi, Noida, Gurgaon, Ghaziabad and Faridabad.
Unlike other startups and mainstream courier in the ecommerce logistics space, VDeliver offers same day delivery through which it collects a shipment in the morning and delivers the same by the end of the day.
How does it work?
VDeliver has four warehouses across Noida, Gurgaon, East Delhi and North Delhi. After collecting the shipment from the associates, VDeliver segregates it on basis of pin codes and then it gets delivered at a consumer’s doorstep. For consumers, VDeliver offers customer care (over phone) and an online chat option for consumers to track the status of their order in real time.
Currently, with a 35 members team, VDeliver ships 800-1,000 orders per day for online retailers such as Snapdeal, Fashionandyou, Yebhi and BabyOye and several others.
On the pricing front, the startup charges on parameters like size, type and nature (COD, prepaid) of a particular shipment. Pricing also differs on volume that an ecommerce company gives to VDeliver in a month. “In case of forward shipment, our average price for a 500 grams shipment is Rs 25, while in reverse shipment we charge around Rs 35 inclusive of packaging cost,” said Abhinav Kumar, co-founder, VDeliver.
In fact, the pricing seems very competitive, presently in my knowledge none of the mainstream logistics companies offer such price points. Typically, mainstream courier companies charge around Rs 50-55 for a shipment up to 500 gms from an etailer for reverse logistics. It looks viable for VDeliver as they are catering to the Delhi (NCR) region only. It will be interesting to see whether they will offer same pricing in other cities.
For warehousing, the company charges based on the volumetric of the shipment and the average price is around Rs 20 per day per shipment.
During an interview with NextBigWhat, Sanjiv Kathuria, CEO, DotZot said that ecommerce logistics is at a very nascent stage and entry timing for startups is more conducive than the past. Speaking about profitability in the business, Abhinav Kumar, the founder of VDeliver, said, “Given the ecommerce industry is in growth stage, we are not yet dealing with scale to turn the venture profitable, but we are close to breakeven and will achieve it soon.”
As of now, Vdeliver is a bootstrapped venture, however the company is talking to investors to scale and expand into different cities. “We plan to have our presence in 17 cities, serving around 1,000 pin codes,” added Kumar.