Ahmedabad: The delivery scenario in B2C e-commerce earlier was like a Test cricket match; later it converted into a one-day, and now in the era of quick commerce, it’s like a Twenty Twenty cricket, said Ajay Chitkara, MD and CEO of Ecom Express Ltd during an interaction here while explaining the journey from a delievery that would take a few days to the present era of quick commerce, in which delievery takes a few minutes. Ecom Express, a prominent player in the B2C e-commerce logistics sector serves major e-commerce platforms, including Amazon, Flipkart, Meesho , and others. Apart from regular deliveries, Ecom Express is also involved in quick commerce deliveries for platforms such as Blinkit and Instamart, among others.

Ecom Express nationwide delivered about 2 billion parcels through 11 years, he said adding that during the Diwali period it peaks to 30 lakh parcels per day on average, while in normal days the count is around 15 lakh delieveries. The market share of Ecom Express is 27 percent, and it is the second number. However, in tier-2 and tier-3 areas, it is a topper. According to Chitkara, last year the company delivered 51 crore packages. He said the company so far has been delivering up to 10 kg packages, but next it will deliver 10 to 15 kg packages.

He said the company’s CAGR in the last 3 years was 35 percent. He added that the e-commerce market is likely to grow 15 to 20 percent in the next 3 years. The company, which was formed by four former Blue Dart employees, has 180,000 bikers as its partners for deliveries and 68,000 customers. The company is focused on the tech part of the logistics system and working with 400 engineers.

Chitkara said, ‘Ecom Express has developed a distribution network that covers approximately 97% of India’s population. The company’s journey, as detailed in its Draft Red Herring Prospectus (DRHP), highlights a strategic focus on automation, technology integration, and an asset-light business model, all of which contribute significantly to its operational success. As of FY 2024, the company has established 33 automated sortation stations across the country. These facilities are crucial in processing and sorting large volumes of parcels with high accuracy and speed, significantly reducing manual intervention and the risk of errors. Automation not only enhances the speed of operations but also enables the company to manage peak loads effectively, especially during high-demand periods like festive seasons.’

He further informed, ‘Ecom Express’s proprietary technology is tailored to address the specific needs of B2C e-commerce logistics, where managing large volumes of small shipments across vast geographies is a daily challenge. The tech stack integrates functions such as order management, real-time tracking, and route optimization, which are vital for maintaining high levels of efficiency. By leveraging these technologies, Ecom Express ensures timely deliveries, accurate shipment tracking, and optimized routes that reduce delivery times and costs.’

He said, ‘Another significant factor contributing to the company’s operational efficiency is its asset-light business model. Unlike traditional logistics companies that own significant physical assets like warehouses and vehicles, Ecom Express operates on a model that minimizes ownership of such assets. This approach allows the company to be more agile and scalable, adapting quickly to changes in demand without the burden of high capital expenditure. The asset-light model also facilitates better cost management, as it reduces the financial strain associated with maintaining and upgrading large-scale physical infrastructure.’

About its Gujarat operations, Chitkara said the company  has increased its capacity to 8 lakh shipment processing in Gujarat. The company had 4 automated centers in Gujarat in the year 2021 and eventually incresed the number fo five. Around 3,000 persons are involved in Ecom Express activities in Gujarat. He said that Gujarat is the biggest hub for fashion industry because of large scale manufacturing here.

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