Shadowfax, known as a Bengaluru-based logistics company, currently announced about its expansion of business-to-consumer (B2C) logistics service for Chinese e-commerce and logistics companies in order to deliver goods at the doorstep of Indian online consumers. Further, the startup’s initiative is to take over into Chinese imported goods that comes at a time when China’s imports to India sprang by 16.6% to $50 Bn in 2017-18.
Rohit Gupta, business development Vice-President of Shadowfax, siginificantly estimated that China to India e-commerce market is recently having an agreement of orders worth INR 8-9 Lakh ($11.4K-$12.8K) per day, and is improving and maturing day-by-day. “This is the kind of market opportunity we are tapping into,” claims Rohit Gupta.
“We are just a logistics player who ensures that their products are delivered to the consumers. The policy will not impact our operation at large. But, for the Chinese companies to whom we were talking to earlier, the contract might happen with their Indian entity when the regulation comes into force,” stated Gupta.
Shadowfax is recently preserving the table open for Chinese e-commerce players with its end-to-end delivery together, for shipping products directly from the Chinese factory to India and also for Chinese companies having a port in India. It also turns out a return solution with doorstep quality check on the product. “We will assure that there is less than 2% error rate in the product which is returned compared to an industry average which is three times to that,” Rohit marked.
Regulating logistics in India is a very complex process as there are multiple routes, and the package can get delayed for multiple reasons. Keeping in mind its delivery platform and its functions, Shadowfax has deployed artificial intelligence (AI)-driven solution, called Frodo, that lends a hand towards optimization of the routes accurately. Gupta marked an example stating, “If I need to go from city A to city B, there would be a network of hubs who can deliver the package. Frodo determines, for instance, which partner would be able to go, which would be the most optimal route for the rider.”
“For instance, if a particular delivery happens in seven days, which should have been delivered in five days. Then the system will automatically learn what went wrong, so that, next time the route is optimised to make delivery decisions.
It also looks at the riders way of performances, mainly for improvement reasons. It keeps reading the data points and keeps improving on its own,” Gupta claimed. The startup is recently growing and innovating its capabilities in line with what the situation demands, for both e-commerce players and logistics companies.
It further also formulates a crowdsourcing model, in which the delivery partners can see to the timings at which they want to work, by that they get complete fairness and attention and hence, get paid accordingly. The delivery partners are paid in an hourly basis.