Home > Business Insider > Non-Food Segments offer More Profit for Last-Mile Delivery Firms

Non-Food Segments offer More Profit for Last-Mile Delivery Firms

To broaden the business horizons and improve returns, last-mile delivery players have started working closely with ecommerce companies, banks and vertical players such as Lenskart and pharmacy aggregators.

Looking to current market scenario and profitability, Investors are also pushing companies to go for the non-food segment. Fidelity’s proprietary investment arm Eight Roads Ventures has invested Rs 50 crore in September last year in last-mile delivery Company Shadowfax. The company now delivers 50 per cent orders in the non-food category of which the same day deliveries for ecommerce makes up 30 per cent.

Studies say, the last-mile delivery players are moving towards an equal mix of food deliveries and on-demand in this scenario. Sequoia-backed Roadrunnr and Shadowfax are signed by online marketplace Paytm for its online-to-offline deliveries for packages weighing less than 3 kilos.

In coming time, the last-mile delivery players are expected to capture intra-city deliveries from traditional companies if they can build scale.

You may also like
Witnessing the Digital Transformation in eCommerce
Lotte to Enter the Vietnam eCommerce Market
A Disrupted eCommerce Retail Market – Good News for the Logistics Sector
ASEAN’s E-Commerce Development