India’s Last Mile Delivery To Become $6B Profitable Market by 2024
The impact of last mile delivery on Indian customers is quite noticeable by now. The convenience that these last mile delivery options offer has successfully converted many people into potential customers.
Surge in Last Mile Delivery in India
According to a recent report, the last mile delivery of India is all set to become a profitable market of $6B by the year 2024. This is almost similar to China and the US that are using last mile delivery services up to 10% by now. So, after China and the US, India is also all set to join this league.
The last mile delivery of India covers a wide number of categories such as e-commerce, retail, FMCG, and many others. Today, almost everything is available online and customers in India are in love with this fact. A sharp rise in online shopping has been noticed in India during the lockdown phase due to COVID spread. This rise is growing high with each passing day now. Thus, among several categories, FMCG and ecommerce contributes the most the rising profits of last mile delivery in India.
According to the Statistics shared by RedSeer, the total ecommerce shipment in the year 2018 was 817 millions. This grew upto 1364 millions in the year 2020. As per the expectations, if this trend remains, then the amount will go up to 5000 millions by the year 2025.
To break it down further, road logistics offers the highest contribution to the last mile delivery market with 75% to the total logistics market. This is for both intercity as well as the intracity logistics.
Why Customers are Availing Last Mile Delivery Service?
So, what is the big reason due to which customers in India are making use of the last mile delivery quite often. There have been several reasons to this actually.
- The Ease of Delivery:
The very first reason why most people love this service is due to the ease of delivery. The customers do not have to visit any warehouse or any delivery spot to get their belonging. The delivery agents deliver the items at the doorsteps of the customers. One of the major reasons to have an increase in the demand of online shopping is the ease of delivery today.
Most of the ecommerce sites or online shopping companies prefer to hire last mile delivery service providers so that they can offer their customers the benefit of delivery at doorstep. There are many such addresses that are located at some interior and secluded area.The customers or the clients do not have to worry about such locations also. The last mile delivery agents make sure to go that extra mile and deliver the item to the person in hand.
- Same Day Delivery Option:
The same day delivery option of the last mile delivery service has made lives seriously quite easy. There are so many times when the customers are in urgent need of something. It can be a document from the office or an item that the person has purchased. It may happen that waiting for a few days to get this item delivered is not possible. Hence, one of the best ways is to get the same day delivery service of the last mile delivery.
There are some delivery service providers who may deliver the item on the same day if the item has been shipped at the start of the day. There are some others who may deliver it the next day. Of course, this service depends upon a number of factors suh as the location of the recipient, and others.
Today, especially in the case of medicines and essential items, customers prefer to get the option of same day delivery. It is not always possible to provide the service to each and every customer as it is also a cost consuming method. Hence, most courier services charge extra for this service. Also, many ecommerce sites offer this option on some goods, depending upon the possibilities.
Of course, the demand for same day delivery is quite high now. Hence, the last mile delivery services are trying to get help from the latest technologies to offer the services to their clients and customers.
- Online Tracking:
Now this is the most important feature that the clients and customers love about last mile delivery. When an item is shipped, an online tracking link is provided to both the parties. Using this link, the sender and teh recipient can track the movement of the shipment from time to time. Now, the last mile delivery services with latest techniques offer real time updates such as when the item has left the warehouse, when it has reached the next destination, and others. This helps the recipient to stay ready to receive the package at the right time. Also, in case of an expensive item, the sender gets a peace of mind checking the proper movement of the item.
The Future of Last Mile Delivery in India
Having a keen eye on the progress of the last mile delivery service, it can be surely said that the future of the service in India is quite bright. During the lockdown, when people were not able to go out of their houses, last mile service was of great help. It has been noticed during this time that even those people who earlier did not had faith in online shopping also turned their faces towards buying essentials online during this pandemic. Now, impressed by the benefits of last mile delivery, these people have also become a regular customers.
Thus, overall with each passing day, the number of customers making use of the last mile delivery is increasing. Also, with the passing day, a number of clients are also increasing for the last mile delivery now. So, within a time period of next 3-4 years, the last mile delivery service of India will surely see more profit in the market. As of now, the estimations are made that by the year 2024. India’s last mile delivery will become a $6 billion profitable market.