E-commerce players in talks with staffing firms to expand fleet

Bengaluru | Published: June 22, 2018 3:06 AM

Amazon, Flipkart and Myntra have started discussions with staffing companies and service providers to expand the delivery fleet.

E-commerce players in talks with staffing firms to expand fleet

As they do every year, e-commerce players are strengthening last-mile services or delivery operations. Amazon, Flipkart and Myntra have started discussions with staffing companies and service providers to expand the delivery fleet. Typically during the festive season, the delivery staff strength goes up by as much as 35-40%. The festive season demand apart, the penetration of online retail into smaller towns has increased the need for last-mile delivery staff.

Employment service provider Teamlease says the e-commerce retail logistics — supporting the last-mile consumer delivery — is growing at a great speed and will employ one million people within the next four years. Mayur Sunit Saraswat, head-business (north), TeamLease, said discussions for providing the additional staff are in the initial stages. The company provide staffing services to leading players
such as Amazon, Flipkart, Swiggy, Zomato and others.

The last-mile delivery comprises 45-50% of e-commerce retail transportation costs. KPMG estimates the e-commerce retail logistics market at $1.35 billion and projects that it will grow at approximately 36% in the next five years. Peak season sales begin by the end of July and go on through December — these include the Flipkart Big Billion Day sale, Amazon Great Indian Sale, Independence Day sale, the Diwali season, Christmas season and the New Year.

Amazon and Flipkart have their own captive networks — Amazon Transportation Services (ATS) and eKart. Analysts say the captive logistics arms of Flipkart and Amazon employ about 15,000 and
8,000 people respectively, and the total e-tail delivery manpower in the country is about one lakh excluding food and groceries.An Amazon India spokesperson said the firm adds additional headcount for the high volumes in the busy shopping seasons. “Delivery associates form a significant chunk of our workforce,” he said.

Guruprasad Srinivasan, president, Dependo Logistics, a subsidiary of Quess Corp, said his firm is creating new business models that can help in the delivery of packets. “The average number of shipments per delivery person is also increasing,” Srinivasan said.

Pradeesh Chandran

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