DHL ecommerce to launch its Indian operations
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Mail and logistics group Deutsche Post DHL (DPDHL) is expanding its dedicated e-commerce logistics service- DHL e-commerce- in India. The company has been testing e-commerce logistics business in India through its Indian subsidiary Blue Dart Express since 2014.
The publication reports that Germany-headquartered DHL eCommerce has hired former Reliance Jio marketing head Neeraj Bansal and will be roping in more senior executives to kickstart its operations in the country by March 2018.
DHL ecommerce has previously made many investments in the country through its BlueDart Express subsidiary. However, the publication added that BlueDart and DHL eCommerce will not be competing against each other but rather co-exist.
Recent developments in the logistics segment in India
While there are a number of standalone logistics companies in India. E-commerce players too have started having their own logistic arms in the country.
Amazon: In November, Amazon India’s logistics arm Amazon Transportation Services (ATS) further received funding of Rs 130 crore from its US-based parent Amazon Inc. Before that, ATS received Rs 207 crore worth of funding from Singapore-based Amazon Corporate Holdings and Amazon Malaysia, in June, and before that, it had received Rs 67 crore in September 2016.
Flipkart: Etailer Flipkart also owns a logistics arm eKart, in which it invested Rs 961.4 crore in October. In April, Flipkart-owned online fashion website Myntra acquired Bangalore-based logistics startup InLogg.
Hippo: Hippo Innovations Private Limited, which runs the DIY mobile e-commerce platform StoreHippo, launched an e-commerce logistics solutions aggregation platform called ShipKaro, in October. At present, it lists standalone companies like Delhivery, Aramex, FedEx, Ecom Express, Holisol, Blue Dart, Bombino Express, DTDC, Book A Wheel, Gati, OnlineXpress, Vegostics, and Xpressbees as carrier partners. It claims to deliver to over 20,000 PIN codes across India.
The government of India: In October, the government of India launched the International Tracked Packet service, which provides cross-border shipping for the e-commerce sector in the Asia-Pacific region. This service is provided by the Department of Post, and offer features like track & trace, volume discounts, pick up facility, and compensation for loss or damage.
In terms of standalone companies, there are firms like Ecom Express, Locus, Delhivery, Rivigo, Loadshare, Blackbuck, and also NSE-listed Gati, which invested in Browntape.com in November, which is a service which enables vendors to sell on multiple marketplaces with the same pool of inventory, and give them access to data, marketing and technology.
Questions & Answers
Q.What is the expected launch date for DHL eCommerce's operations in India?
What is the expected launch date for DHL eCommerce's operations in India?
DHL eCommerce plans to kickstart its operations in the country by March 2018. They have already hired former Reliance Jio marketing head Neeraj Bansal and intend to recruit more senior executives for the launch.
Q.How will DHL eCommerce and Blue Dart Express operate in the Indian market?
How will DHL eCommerce and Blue Dart Express operate in the Indian market?
The publication states that Blue Dart and DHL eCommerce will not be competing against each other. Instead, they are expected to co-exist, indicating a collaborative or complementary approach to the market.
Q.What new service did the Indian government introduce recently for e-commerce cross-border shipping?
What new service did the Indian government introduce recently for e-commerce cross-border shipping?
In October, the government of India launched the International Tracked Packet service. This offers cross-border shipping for the e-commerce sector in the Asia-Pacific region, including features like track & trace and volume discounts.
Q.Which e-commerce companies mentioned in the article have their own logistics arms in India?
Which e-commerce companies mentioned in the article have their own logistics arms in India?
Amazon operates Amazon Transportation Services (ATS), and Flipkart owns eKart. These e-commerce players have invested significantly in their logistics divisions, demonstrating their commitment to this sector.