Groceries in 30 minutes. Food delivery apps that filter restaurants based on the delivery time. Milk deliveries on the dot in the morning. A new pair of shoes, that book you’ve had your eye on. You want everything cheap and you want it yesterday. The convenience of online shopping is here to stay. But with prices already at rock bottom, increasingly, the differentiator for e-commerce and food-delivery firms is cutting delivery costs.
Shadowfax’s kirana key to fixing last-mile delivery
Last-mile delivery costs comprise 40-60% of the average cost per delivery per order. But logistics company Shadowfax, which has received a Flipkart-led funding round of $60 million, claims it is able to cut costs by 25% by tying up with kirana stores
Shadowfax is competing with large e-commerce firms like Amazon and Flipkart in the delivery game
They are tapping into the kirana store network in order to bring down costs and generate demand
But Shadowfax can deliver cheaply due to its gig economy set-up and cross-utilisation across categories
It now wants to grow its 8,000-strong kirana network to 50,000 in the next 3-5 years years, expanding from 300 cities to 1,000