With the growth of e-commerce in India, third-party logistic service providers are becoming the major beneficiaries of it. Third-party logistics service providers like Shadowfax and Loadshare view e-commerce as the growth lever for them to expand operations.
E-commerce player Meesho has partnered with various third-party logistics players (3PLs) for the fulfilment of its services.
The company looks to double the number of its shipments to over 1.2 billion in FY23.
“We did not feel the need to reinvent the wheel. 3PLs are bringing economies of scale and expertise and we believe that they can do a better job than any in-house network,” said Sourabh Pandey, CXO, Fulfillment & Experience at Meesho.
The 3PL services have generated thousands of jobs for the country’s blue-collar workforce. In just 2 years, nearly two lakh on-roll and off-roll jobs across first-mile, sortation, and last-mile delivery were generated by 3PL partners, a significant chunk of the overall employment opportunities created by the ecosystem, he said.
Nearly, 75 per cent of its total revenues now come from e-commerce shipments involving a wider geographical range, said Abhishek Bansal, co-founder and CEO of Shadowfax. It is building warehousing hubs and other facilities to cater to this demand.
“A logistics organisation needs to utilise every lane, every end of the supply chain. It is a pure game of economies of scale. Hence, the better the density on every node across the journey, the lower the cost. That is how one can optimise cost as well,” he said.
Currently, Shadowfax has more than 2 lakh delivery partners, with 20,000 plus on-roll and off-roll staff, while its revenues have grown 110 per cent year-on-year in FY22 and 55 per cent y-o-y in FY23. It is currently serving 14,000 pin codes and plans to expand to 20,000 pincodes in the next 6 months.
Raghuram Talluri, co-founder and CEO at Loadshare, said that 50 per cent of its revenues come from e-commerce. It currently has 50,000 active riders and currently serves 9,000 pin codes.