Delhivery stepped up its partnerships with offline pharmacies and
FMCG retailers to help them reach consumers efficiently, according
to Mohit Tandon
Demand for medicine delivery had shot up sharply after the
country-wide lockdown was introduced in late March
Logistics startup Delhivery made temporary adjustments to its
business to ensure that essential products such as medicines and
FMCG goods reached customers in time, said co-founder Mohit
Tandon.
During Mint’s second webinar in the Pivot or
Perish series, Tandon highlighted that the startup temporarily
pivoted its delivery network to ensure deliveries could be carried
out locally.
“One fundamental shift that we are seeing is
that, apart from the traditional market place and warehouse model,
there was a lot of demand coming from hyperlocal stores and
retailers…Hyperlocal delivery is now becoming a part of our business
for which we relied heavily on our last-mile delivery network. So we
had to figure out how to ensure deliveries in 2,3 or 4 hours to
customer’s doorsteps, at a cost that is viable to the retailer,”
Tandon said.
He added that before the lockdown was
introduced in India in late March, the company did not have a large
presence in delivering essential goods. So it had to “reboot” its
delivery network to cater to essential retailers and manufacturers,
especially in the FMCG and pharmacy segments.
Demand for
medicine delivery had shot up sharply after the country-wide
lockdown was introduced in late March. Mint reported in March that
online medicine delivery firms such as 1MG, NetMeds, and MedLife had
temporarily suspended operations in many cities, after the police
roughed up delivery workers, even after e-commerce was classified as
an essential service.
Hence, Delhivery stepped up its
partnerships with offline pharmacies and FMCG retailers to help them
reach consumers efficiently, according to Tandon. During the
lockdown, consumers began depending heavily on e-commerce firms and
online retailers to buy essential products, which compelled
Delhivery to cater to changing customer’s demand.
“Pharmacies
were not equipped to deal with high order volumes. So we had to
start moving medicines, vaccines, insulin, to customers immediately.
We needed cold storage for this, and we had to maintain ambient
temperature to transport medicines which we never tried before…and
so we spent entire April ensuring this,” said Tandon.
Gurugram-based
Delhivery is one of India’s newest unicorns, backed by investors
like SoftBank Vision Fund, Carlyle Group and Fosun International. It
operates across 3,000 cities, offering a full range of logistics
services, including express parcel transportation, freight,
business-to-business and business-to-consumer warehousing and
technology services.