Express Delivery is going to be Flipkart’s next big move

The struggle to exploit possibilities in the eCommerce market is getting trickier for leading eCommerce firms. After Amazon, now Flipkart too is gearing up to get into hyperlocal/express local delivery system.

The battle to reach out to the consumers faster is the focal drive for the hyper local delivery system. A report published in Economic Times said, Flipkart is firming up plans for its logistics unit, eKart, to take on competition from on-demand startups that promise to deliver products within an hour, typically by tying up with local stores.

The express local delivery system has recently been espoused by Amazon India and BigBasket.

Flipkart Co-founder and chief operating officer Binny Bansal in an interview with ET has said, “We are doing a ton of stuff (with hyperlocal).” Denying making any comments on company’s further plans he said, “We are serious about it. Hyperlocal needs to be done in the right way."

With on-demand startups such as Grofers and PepperTap raising huge sums from investors, hyperlocal delivery has emerged as an operational category this year. These firms typically source and deliver products from partner stores closest to a buyer, posing a significant challenge to large online retailers like Amazon and Flipkart that aren't as agile.

Flipkart, while it builds its supply chain capabilities, is also working with on-demand logistics startups Delhivery and Roadrunnr for hyperlocal deliveries, officials directly aware of the matter said, requesting anonymity.

It seems like the officials have planned to stay mum as Flipkart, Delhivery and Roadrunner did now responded to the queries and denied to make any comments in the matter.

Bansal said Flipkart will invest $80-100 million (Rs 510-640 crore) this year to strengthen its supply chain capabilities. "Supply chain is completely broken in ecommerce. The growth in the market is so much that we cannot absorb all the growth in eKart," he informed.

The COO also said that eKart aims to hire at least 350 experts in product and technology to take its total strength in these areas to 500, without giving a specific timeframe. "We are building a solid team of experts - technology, supply chain design experts, and product experts in a huge way," he said.