India Post Generates INR 50 Cr from E-commerce Deliveries in Karnataka Alone

Karnataka post circle

India Post (Karnataka Circle) has generated INR 50 crore revenue in current financial year for e-commerce firms like Amazon, Snapdeal, Flipkart, Myntra, Homeshop18, and Global Shiksha among others. MS Ramanujan, chief postmaster general, Karnataka Circle told TOI that they currently take up both Speed Post and Cash on Delivery (COD) orders.

This week, India Post is also piloting a same day delivery service for Amazon, which would see goods received by India Post by 3pm to be delivered the same day.

The Government agency has transacted business worth INR 280 crores in the Cash on Delivery (CoD) segment for these e-commerce firms in the last one year. And since it is earning INR 50 crores in revenue from a single state alone, the total business it is getting from the growing e-commerce would be huge.

Also Read: India Post Signs an MoU with Snapdeal and Shopclues; Also to Launch INR 4909 Cr IT Project

It recently signed a Memorandum of Understanding with Indian E-commerce companies Snapdeal and Shopclues, to join hands and further propel the e-commerce logistics. As for the online retail companies, India Post comes as a savior, since no logistics company as of now caters to as many postal codes as India Post, which has about 1.55 lakh post offices.

Communications and IT Minister Ravi Shankar Prasad has also said previously that India Post is best suited to offer delivery services to e-commerce players, given its wide reach across rural, urban and semi-urban areas.

India Post is gearing up with its infrastructure to be an active part of the distribution, delivery and logistics which is said to touch around INR 9 billion by 2021. Thereby being one of the Government Body which is strongly supporting the online businesses in the country.

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Action in E-Commerce Logistics in India

In August this year, mail and logistics group Deutsche Post DHL (DPDHL) had said that it plans to invest around INR 800 crore in Indian e-commerce business including express (small parcel transportation), aviation, e-commerce and warehousing, in the next two years.

In March last year, Courier service provider company DTDC Courier and Cargo had launched a new arm called DotZot to provide logistic support to e-commerce companies.

Also Read: E-Commerce Logistics in India is Getting Hot

Distribution and Supply Chain Solution company, Gati had also launched an e-commerce focused website GatiConnect and generated revenues of INR 40.7 crore.

The other companies which are exclusively for e-commerce logistics, namely HoliSol, Delhivery and E-comm Express, have raised funding this year to expand their operations. However looking at the scale India Post is having, it is still time for them to catch up.

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