India’s leading e-commerce rivals have now shaken hands. Flipkart’s logisitics arm Ekart will now start to deliver the orders booked through Paytm. This will bring a drastic change in the current e-commerce delivery model as the major players who capture more than 60% of the market share, have unitedly taken this step.
These 2 companies are said to have been in discussion since last 3 weeks, and now they have finally entered into a partnership. Morgan Stanley, early this year de-estimated of Flipkart’s shares by 27%, but it continues to be the country’s largest e-commerce platform.Â At the same point of time, Paytm leads as India’s biggest mobile wallet company with a valuation of over $3 billion.
This strategic deal, will have a major impact on the logistics structure of other e-commerce competitors as this collaboration will make the delivery mechanism of the major market share holder’s much easier and efficient. “Ekart will be an interesting experiment for us,” said Vijay Shekhar Sharma, the chief executive officer of Paytm. “Since we are a marketplace, we work with different vendors to enable our merchants reach a wider consumer base”, he added.
Right after the appointment of Binny Bansalas the Chief Executive Officer of Flipkart, Ekart have witnessed a rapid growth in itself. Â Amitesh Jha, a vice-president at Ekart said,â€ Ekart has the capability to transport over 5 lakh shipments from different sellers across India. We will be using the same capabilities to offer services to other companies.â€
“We are integratingÂ EkartÂ with our network of logistics players to offer end-to-end experience for both consumers and sellers,” said Sudhanshu Gupta, head of business at Paytm.