India Post has the largest network of post offices in world. However, it had been witnessing a continuous negative growth rate owing to lack of innovation and technical support. For the same reason, it had a negative growth rate of 2% in year 2012- 13.
Last year, India Post gained an increment of 37% in their revenues for parcel delivery. This was successful mainly because of its partnership with Amazon, Snapdeal and Paytm. The ministry of Communications and IT reported that investment made for enhancing eCommerce parcel booking, transmission and secure handling capabilities and for mechanizing delivery starting with the bigger cities resulted in such a huge growth rate.
With the emergence of new players, the competition for India Post is getting tougher with each passing day. Hence, to meet the demand of the situation, India Post has tied hands with eCommerce companies like Amazon, Paytm, Snapdeal and YepMe to become their logistics partner.
It has its own Android app with real time tracking and postage calculator. It has set up 48 new modernized delivery systems across the country.
Out of the 1.54 post offices that India Post own, 89% of them lie in rural India. As of e-commerce, rural India has been completely out of reach. In the light of all these, it can be said that India Post can turn the game towards the desired goal for ecommerce by targeting rural India as its next area of focus.