India Post to have a tech makeover, as ecommerce companies lean more on it for last-mile delivery

Thanks to the unmatchable and extensive delivery network of India Post, many ecommerce companies like Amazon, Snapdeal and Shopclues have tied-up with the government operated postal system to meet the growing ecommerce demand.

India Post comes to rescue for last mile delivery

Out of all the online marketplaces, Amazon is the one that has been relying the most on India Post for delivering orders in remote areas. So much so, that in many deeper pockets of South India, ecommerce equals to Amazon since only they have managed to fulfill orders through India Post.

For instance in Pune, Amazon is the only player that has tied-up with the postal system. In August they delivered 19,952 Amazon parcels and in September 16,277 orders in Pune.

An official spokesperson of Amazon said to Indian Express, “It is not about economics but about the accessibility provided by India Post. The Postal Department, with its outreach, allows penetration to the company other players may not have.”

Modernizing postal services

While, India Post is a good bet for ecommerce, change in attitude was the need of the hour in order to keep pace with ever-growing ecommerce industry.

Looks like the government postal service company has finally figured that out and hence is looking to modernize their services to accommodate fast-paced online marketplaces.

According to this Business Standard report, the postal department has asked for a non-plan fund of Rs 1,000 crore from the Finance Ministry in the upcoming budget. The funds will utilized to revamp post offices, replace old hardware, and add more vehicles to its existing fleet.

Speaking about this positive change, a postal department official said, “Seeing the huge growth in e-commerce orders, we plan to modernise post offices and replace old hardware. About 35 road routes for parcel transmission will be operational in the next one year. Shifting to a road network will ensure secure and speedy delivery.”

India Post is in a dire need of revenue and ecommerce companies need to design a flawless last mile delivery network. With both the parties teaming up, it’s a win-win situation for all.