E-commerce firm,Paytm Mall, plans to start same-day hyperlocal deliveries for groceries, electronics including smartphones and wellness products to diversify its offerings to customers, said two people aware of the discussions.
It is looking to launch a single-city pilot for hyperlocal delivery and is in talks with existing logistics partners including Delhivery, Gati Ltd, among others.
The company does not plan to offer medicines or fresh produce yet owing to the supply-chain complications involved in making deliveries for such products.
Paytm Mall has been ramping up its hyperlocal play through partnerships with local kiranas and offline stores.
Paytm Mall did not respond to Mint’s queries.
Walmart-owned Flipkart is also looking to start hyperlocal delivery, starting with grocery, within 90-minutes from local stores and its own fulfilment centres along with logistics startup, Shadowfax. Flipkart had invested in Shadowfax in December 2019.
Amid the covid-19-led lockdown, Paytm Mall, which recently shifted its headquarters to Bengaluru, had said it will partner with 10,000 kirana stores, small shops and other small businesses for hyperlocal deliveries.
Now, for the groceries segment, the company is looking to add newer features, which might help customers track local kiranas in their neighbourhoods that are willing to deliver the requested products.
For the four-year old e-commerce player, groceries continue to be an attractive proposition as it contributes close to 40% of the total GMV (gross merchandise value), at present.
Mint had earlier reported that Paytm Mall is looking to partner and invest in online grocery delivery firms such as Grofers and MilkBasket.
Paytm Mall is, however, not planning to pivot or move away from its regular e-commerce operations, said one of the persons mentioned above.
Demand for products listed on Paytm Mall continue to be in tier-2 and 3 geographies owing to the company’s focus in the last two years. Thus, it wouldn’t be surprising if the firm will look at pushing hyperlocal same-day deliveries in these regions.
The nationwide lockdown has blurred lines between offline and online retail, with more offline retailers looking to register on online e-commerce platforms as walk-in stores have taken a hit. Now, e-commerce companies are looking to help in the last mile connectivity by trying to add hyperlocal strengths and even provide delivery capabilities to lure customers.
Gurugram-based Snapdeal has been focussing on hyperlocal as a strategy to build up its seller-base, reduce delivery time, while looking to offer new categories such as non-prescription medicines on its platform.
However, it does not have plans to enter into the same day delivery category.
This article was first published on livemint.com