India’s last mile delivery to become $6B profitable market by 2024

(IANS) India’s last mile delivery market is set to touch a market size of $6-7 billion by 2024, moving in a similar direction to markets like China and the US where the penetration has reached more than 10 per cent, a new report said on Monday.

India’s last mile delivery constitutes of FMCG, e-commerce, retail and other categories. Of these, FMCG constitutes the highest followed by e-commerce, according to a report by Bengaluru-based market research firm RedSeer.

“In the e-commerce sector, logistics is divided between captive and third-party logistics (3PL). The overall e-commerce shipments has grown from 817 million shipments in 2018 to 1,364 million shipments last year, and is expected to grow over 5,000 million by 2025,” said Kanishka Mohan, a Director with RedSeer.

The overall road logistics constitutes nearly 8 per cent of the overall GDP of the country, across the value creation cycle The road logistics contributes the highest in the overall logistics market.

“Road logistics is a market size of $240 billion with 75 per cent share of the overall market size,” Mohan said in a statement.

It is divided between Intracity and intercity logistics.

Intra-city logistics, which includes the last mile delivery, is the movement of goods within 200 km (one side), with a round trip less than 24 hours, and a load less than 5 tonnes.

“It currently represents about 18 per cent of the overall logistics. In the intra-city segment, the market is dominated by players like Porter, LetsTransport, Blowhorn and Lynk,” the report showed.

Logistics have remained a backbone for many industries and over the years have enhanced its technology-based offerings to suit various sectors and their needs.

Today, the larger market is divided based on roads, warehousing and other transport, the report said.

Was it worth reading? Let us know.