Online marketplace Flipkart has decided to shutdowns it logistics arm Ekart. The online marketplace has decided to consolidate two its services C2C couriers and Hyper local delivery. These two services were found more than a year ago.
When contacted to Ekart spokesperson, “Beginning February 5, Ekart no longer operates its customer-to-customer courier service started in May 2016, that gave people the option of having documents and parcels packed by Ekart’s delivery boys and shipped to end-addresses.”
The company also said that these changes are made in order to sharpen the focus to its core on business models.
Ekart is India’s largest logistics and supplies Chain Company delivering 10 million shipments a month to 3800+ pin codes. Established in 2009, Ekart as Flipkart’s in-house supply chain arm has powered the growth of Flipkart with innovations such as Cash on Delivery, In-a-day guarantee, Same-day guarantee.
Ekart used to process 30000-40000 orders per day for Flipkart as well as the third-party online marketplaces. Ekart used to take orders from Myntra as well, as it was acquitted by Flipkart in May 2014.
However, it will be continuing its service for third party applications like Paytm and Shopclues. Ekart will also provide warehouses and fulfillment facilities to larger retail clients such as Madura Garments.
On the shutdown, chief operator of Ekart, Saikiran Krishnamurthy said: “over the next two years half of Ekart’s business would come from servicing third-party players, who account for only 10% of the business handled by the company. Read more logistics news.