Not just meant for food deliveries; last-mile delivery firms to now focus on ecommerce

Last-mile delivery companies are moving away from food deliveries so that they can enter diverse fields like business and improve their returns. For this, they are working closely with ecommerce companies, banks and other vertical players.

Another reason for this could be the increased cost per delivery, which has gone over Rs 45 as compared to the average of Rs 35 last year. Because of this, investors in such last-mile delivery companies have maintained a pressure to move towards the non-food segment.

As per experts, these last-mile delivery players are aiming for an equal mix of food deliveries and on-demand.

For example, Shadowfax, which raised Rs 50 crore from Fidelity's proprietary investment arm Eight Roads Ventures last year, now delivers 50% orders in the non-food category, of which 30% amounts for same day deliveries for ecommerce.

"Ecommerce deliveries peak during weekdays while food peaks during weekends. We will continue to do deliveries for food, though diversification of categories is a business driven decision," said Abhishek Bansal, cofounder of Shadowfax.

"Getting the right mix of shipments improves productivity and cost of delivery, providing the last-mile delivery companies a blended yield. Another factor at play here is that a large number of national-delivery players are giving volumes to these players as it works out to be cheaper," said Manish Saigal, managing director at Alvarez & Marsal India.

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