[250418.EN.BIZ] Indian E-commerce Booms as Amazon, Flipkart Takes 80-85pc Share

INDIAN e-commerce, dominated by Amazon and Flipkart, now accounts for INR500 billion (US$7.6 billion) of revenues in the domestic cargo sector with INR100 billion raised in air freight, according to a new study, reports the Press Trust of India.

The Express Industry Report 2018 said the "e-commerce players have challenged the traditional express operations and unlocked many opportunities by providing newer avenues for value addition".

The INR170 billion domestic express industry revenues, made from shipments by road and air, is growing by 15 per cent, with the online sales being the key driver, the report said.

Express Industry Council of India operations chief Vijay Kumar, said he favoured re-evaluation of the government policy to allow the domestic cargo airlines to offer international operations, thus wooing more players into the air cargo business.

The big player today in the domestic air cargo airlines is Blue Dart Express. More players and avenues in the cargo business could mean more scope for expansion for e-commerce, said the report.

Amazon and Flipkart account for 80-85 per cent of industrywide revenues. But newer players such as Paytm, ShopClues and aggressive investments from incumbents to capture a higher share of the lucrative Indian e-retail market, the competitive intensity in the express industry has increased significantly, the report said.

Source : HKSG.