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When it comes to logistics and e-commerce, India has shown an ever- growing appetite for greater innovation and quicker services. But that comes at a cost. As the number of deliveries increase so do the vehicles on the road and that’s where India needs to balance ambition with change to meet its various national and international environmental objectives.

The Hyperlocal Delivery market for example encompasses  more  markets than it did few years back. Medicine delivery, homecare services and particularly micro delivery (Milk and other essentials) have seen exponential growth in terms of the number of users recently. Users of these services can prove to be stickier than those of food delivery

Organizations are capitalizing wave of millennials who want  things delivered at their doorsteps at the tap of  a button. Companies such as Big Basket and Grofers have been continuously improving their logistics to  deliver within a matter of hours. An important criteria for these startups to be successful is to facilitate a customer’s request at lightning-quick speed by improving their logistics infrastructure.

The Indian market has seen exponential growth in the e-commerce and logistics sectors with an ever-growing demand that results from greater innovation and quicker services. The number of deliveries done by these companies together has tripled over time and with their scaled-up operations and so have their logistics costs.




It is anticipated that Global eGrocery Delivery Market will be one of the fastest growing industries reaching US$ 84460 million by 2025.

Online food and grocery retail, currently accounts for just 0.2% of the overall market, is expected to touch $10.5 billion or 1.2% of the overall market by 2023. Online Grocery is creating a sticky customer base and expected to grow at 60% CAGR. While the online grocery industry accounts for only 4.6% of all distribution channel, it is expected to be the fastest growing distribution channel for groceries. India is one of the fastest developing economies in the world and is the fourth largest retail market globally after the US, China, and Japan Online grocery delivery market is expected to grow at 55% through 2021.

Organic Vegetables


CAGR expected in the online grocery delivery market

Meal Prep


CAGR expected over next 3 years as per BCG report



India’s online food delivery market is estimated to touch $12.53 billion by 2023 on the back of high growth rate, according to a recent report by DataLabs by Inc42.  Compared to the global growth rate of 9.01%, the online food delivery market in the country is growing at 15%, as per the report. On the basis of operation type, the Indian food delivery market has been segmented into two categories, namely, restaurant based and food aggregators. Restaurants have dominated the food delivery market, but in terms of growth, aggregators are expected to outperform in the food delivery market. The rising number of logistics providers has  enabled food delivery companies to optimise their fleet, thereby reducing delivery time.



From 2014 to 2019, global eCommerce sales nearly tripled globally. The future of last-mile delivery will be impacted by the continuation of this trend, with a predicted 36% increase in the number of delivery vehicles on our roads by 2030.The Indian e-commerce market is expected to grow to US$ 200 billion by 2026. Last-mile delivery contributes a significant 30% of the total cost of shipments in the e-commerce sector. It could be more troublesome in the cases of single package deliveries, where a tremendous amount of cost and fuel is involved in one delivery itself.  Amazon India in January announced that said its fleet of delivery vehicles in the country will include 10,000 electric vehicles (EVs) by 2025

Shipping Boxes


CAGR expected over eommerce retail logistics market

Sorting Medicine


CAGR expected in the global ePharmacy market during the period 2019-26



The Global Courier Services Market size was 299 billion US$ and it is expected to reach 464 billion US$ by the end of 2025, with a CAGR of 6.5% during 2019-2025. Analysts believe that in the next few years, Courier, Express, and Parcel (CEP) market size in India will reach $3.2 Bn.

The addressable medicine market for e-pharmacies delivery in the country stands currently at USD 9.3 billion and is estimated to grow at a CAGR of 18.1 per cent.

The e-pharmacy market is expected to touch 18.1 billion by 2023. The online pharmacy market is slowly gaining momentum in the E-commerce industry space with it showing an impressive market penetration rate in both the rural and urban regions of India.



The courier, express, and parcel (CEP) market is expected to be valued at more than USD 400 billion by 2024, with a CAGR of 8-10% during the forecast period (2019-2024). The market for Courier, Express, and Parcel (CEP) in India is estimated to grow at a CAGR of more than 10.5% driven by the growth in the e-commerce segment, higher internet penetration into the masses, and the latest technological innovations in the sector.India has been turning into a significant market for both domestic and international shipments with significant companies entering and expanding networks in the market. Innovation has become a key influencing factor for organizations to be seriously lined up with market trends and dynamics. India experienced high development in parcel volumes in 2018, up 21% year-over-year to 2.5 billion. worldwide parcel volumes reached 87 billion in 2018, up from 74 billion in 2017.The last-mile delivery is the crucial piece of logistics, and final mile delivery costs represent almost half of the supply chain costs. Owing to this reason and to accommodate the rising demand to reach the consumer expectations, the CEP companies are integrating the last-mile delivery to the existing services. A huge transformation is taking place in the last-mile delivery, with companies looking at alternatives, such as delivery lockers, pickup points, crowdsourced deliveries, e-vehicles, drone deliveries, and autonomous vehicles.

Men Carrying Packages

Expected to be valued at more than USD 400 billion by 2024

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