Friday, November 21, 2014

Should India post get into logistics services to support e-commerce?

  • Have unparalleled and largely underutilized infrastructure, but may need some investment in technology... 
  • Can reduce state subsidy through value added services like cash on delivery and reverse logistics
  • Today, e-com penetration outside top 20 cities is pretty low as often the logistics are not in place... a potential win win solution
  • Alternatively, they can share part of their infrastructure with the private sector logistic providers for a fee
At the end, in logistics, the size of the network can be a great entry barrier. If the public sector can develop some expertise in technology, efficiency and service, can give a lot of people run for their money

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