The ecommerce logistics service has already found customers like online fashion store Jabong and online marketplace Shopclues (Clues Network Pvt. Ltd); technical integration with Jabong is underway, while Shopclues will come on board in the near future. eFlash is still in beta stage, currently available only to Flipkart employees in Bangalore, livemint.com reports citing people familiar with the development.
Myntra, which was acquired by Flipkart for USD 330 million in May 2014, has already been using eKart’s logistics services since September, 2015. The company expects other ecommerce firms to adopt the services in a big way starting February, 2016.
eKart’s logistics service for third-party etailers will be pitched against ecommerce-focused logistics firms such as Delhivery (SSN Logistics Pvt. Ltd), Ecom Express Pvt. Ltd and Dotzot, the ecommerce focused arm of DTDC Express Ltd, among others. Other traditional logistics companies such as Gati Ltd, Blue Dart Express Ltd, Safexpress Pvt. Ltd and Drive India Enterprise Solutions Ltd are all adding ecommerce verticals to their existing lines of businesses, given the exponential growth of ecommerce in India.
Online retail sales could touch between USD 48 billion and USD 60 billion by 2020, from USD 4.47 billion in 2014, according to a report by financial services firm UBS Group AG in April 2015. According to industry experts, a complete roll-out of the service to other ecommerce companies will require Flipkart to ramp up its infrastructure as most of the ecommerce companies struggle to fulfil orders on time, especially beyond the tier I cities, during special sale events when volumes spike significantly.
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