Indian Economy News

India's last mile delivery to become US$ 6 Billion profitable market by 2024

On Monday, according to a new report, last mile delivery market in India is expected to reach US$ 6-7 billion by 2024, following a parallel trend with markets in the US and China where the penetration has attained >10%.

According to a report by RedSeer, a Bengaluru-based market research company, last mile delivery in India comprises retail, e-commerce, FMCG, and other categories. Among segment, FMCG represents the highest share in the market followed by e-commerce.

Mr. Kanishka Mohan, Director, RedSeer, said, “Logistics is divided between third-party logistics (3PL) and captive logistics, in the e-commerce sector. The overall shipments in the e-commerce sector increased from 817 million in 2018 to 1,364 million shipments in 2021 and is expected to expand > 5,000 million shipments by 2025.”

The overall road logistics contributes the highest share in the overall logistics market and represents ~ 8% of the overall GDP of India.

Mr. Mohan said, "Road logistics market stands at US$ 240 billion attributing to 75% share of the overall market.”

The market is segregated between intercity and intracity logistics.

Intra-city logistics includes movement of goods within 200 km (one side), with a round trip < 24 hours, and a load < 5 tonnes.

According to the report, "At present, it attributes ~ 18% of the overall logistics. The segment is dominated by key players such as Blowhorn, Porter, LetsTransport and Lynk.”

Logistics is interconnected with various industries and act as a backbone of efficient operations. Over the years, the market has advanced in its technology offerings and capabilities to address the need of various sectors

The end-user market comprises roads, warehousing and other transport.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.