While companies like Flipkart, Amazon, Snapdeal etc., are fiercely competing with each other to capture the eCommerce space, it seems like the real bite of the cake has been very tactfully slipped by IRCTC.
Indian Railway Catering and Tourism Corporation, which is a a subsidiary of the Indian Railways has gradually emerged as an unconventional yet major player in eCommerce. The revenue generated from online ticketing on IRCTC crossed the Rs 20,000 crore mark in FY14-15 – an amount which is almost twice the turnover of Flipkart.
Last financial year, the corporation had generated Rs 20,620 crore through online ticket sales which was 34% more than the amount it had generated the previous year, showing a positive growth year on year. The story doesn’t end here. That year, IRCTC had a profit of Rs.130 crore after tax, up from Rs. 72 crores in FY13-14, reports ET.
Commenting on the status of the Government run portal, Sandip Dutta, public relations manager said, “Bulk of the sales may be attributed to IRCTC’s rapid growth in e-ticketing which has been due to its interface and setting up of a very robust process. Capacity enhancement was done to book 7,200 tickets per minute as against 2,000 tickets per minute in the existing system.”
The increase in revenue is mainly credited to service charges on tickets, sales of Rail Neer water, onboard catering services and licence fees from outsourced catering vendors like McDonald’s, KFC, Switz Foods, Only Alibaba, Dominos, Haldiram, Bikanerwala, Nirulas, Sagar Ratna, Pizza Hut. Recently, FoodPanda too joined the league. Further, the rail portal has also tied up with Amazon to leverage its existing database of more than 21 million consumers. Previously, it had tied up with Yebhi. However, the partnership went futile.Category Ecommerce News