Infibeam has launched its own last mile delivery channel for products ordered on the site. The service is currently being experimented in Delhi and NCR region and the company continues to build up on the last mile delivery network by hiring more delivery agents and expanding to other cities across India including Mumbai, Bangalore, Hyderabad, Kolkata, Ahmedabad.
Infibeam Logistics provides delivery and payment collection. In future Infibeam will selectively open up this logistics software platform as a service to small and medium courier companies to manage and track packages for their own clients.
One issue we notice here is the inventory part. From what we know, Infibeam has very little to no inventory for most product categories. They have a good supplier network but not their own inventory in most cases. So what is Infibeam delivering?
Flipkart had launched its own delivery network to fight the last mile delivery issues for eCommerce in India. This move has helped create a clear differentiator, both for investors and consumers. It would be interesting to see if Infibeam can make it more efficient.
Given that the eCommerce funding is now slowing down (whatever we hear has happened around 6 months back), will this segment catch VC attention?
Update: One of our readers, Abhiram, mentioned that even Yebhi has its own delivery.
[Naman is a startup enthusiast and has worked with couple of Indian startups as Product Manager. He writes at The Inspire Blog]