Boom in e-commerce, lack
of security cameras prompt move to own vehicles
The surge in business
through e-commerce parcels has forced India Post to reduce its traditional
dependence on Indian Railways and more on own vehicles for short-haul (200-500
km) routes.
The
reason has also to do with their difficulty in getting permission for
installing closed-circuit TV for security purposes in an allotted train
compartment. This makes it impossible to track the orders from a security point
of view. "We need to change our delivery mechanism, which has remained the
same over the decades. We have to evolve with the changing dynamics, especially
seeing the boom in e-commerce. Shifting to a road network will ensure a secure
and quick delivery of parcels," an official from the department of posts
(DoP) added.
Also,
given that e-commerce is a growth segment for India Post, it is investing to
improve services in smaller towns and cities. In the US, too, the US Postal
Service has managed to boost revenues by partnering with the Postal Service.
Online retailers who have partnered with India Post gets the kind of reach no
other logistics firm gives them. Radhika Aggarwal, CMO, at Shopclues, says that
6-8 per cent of their total deliveries happen through India Post thanks to its
wide network.
Over
time, Aggarwal expects the share of India Post in total deliveries to increase
from current levels. Cash on delivery from e-commerce is expected to touch Rs
1,000 crore this financial year (April on), from Rs 500 crore at end-March. The
country's e-commerce segment is expected to grow from the current $13 billion
to $137 billion by 2020, says Morgan Stanley. That means a steady rise in
deliveries. India Post plans to buy 250 new vehicles by the end of this year,
apart from the existing 1,300. The routes (cities/states) to be serviced are
being identified and deliveries have started on about 12 of these.
There are
150,000 post offices, with 550,000 staffers. The post, had said Samuel Thomas,
director, transportation, Amazon India, was one of the "prime carriers we
use as a delivery channel". Ámazon services about 19,000 pincodes through
140,000 post offices. There are around 26,000 pincodes in India.
In fact,
India Post is considering a separate entity for e-commerce in the next couple of
years. It plans to invest Rs 300 crore in upgrading and setting up new
automatic parcel centres to meet the delivery requirements from e-commerce
entities. It now has one each in Delhi and Kolkata. New ones will come up in
Mumbai, Chennai, Hyderabad and Bengaluru. The data shows the largest number of
bookings (in value) from Delhi. Then come Maharashtra, Andhra Pradesh and Tamil
Nadu. For e-commerce entities, about 70 per cent of orders come from tier-II
and tier-III cities and towns.
India
Post aims for revenue of Rs 200 crore in 2015-16 from e-commerce, more than
twice as high as the earlier year. The annual expectation after five years is
Rs 5,000 crore, an official said
Business Standard