Why Are E-Commerce Firms in India Opting for Digital Freight Matching Services?

The e-commerce industry in India is witnessing substantial growth due to the rising internet penetration, the surging use of smartphones, laptops, and tablets, and the increasing number of online shopping platforms in the country. The rising popularity of online platforms is creating a notable requirement for logistics services, owing to which e-commerce companies in India are increasingly opting for digital freight matching services. Adoption of these services reduces operational costs of such companies and offers convenient delivery options.

Additionally, mounting investments being made in the development of improved logistics services will also contribute to the Indian digital freight matching market prosperity during 2020–2030. Nowadays, e-commerce giants, logistics firms, and venture capitalists are heavily investing in start-ups offering digital freight matching services to cater to the rising demand for advanced logistics solutions. For example, in December 2019, Walmart, an eminent e-commerce company, invested $60 million in Shadowfax, in its series D round of funding.

According to P&S Intelligence, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai will hold a significant position in the Indian digital freight matching market in the upcoming years, due to the presence of massive urban population and high disposable income of the people in these cities. As per the 2011 Census of India, the population of Greater Mumbai, Kolkata, Hyderabad, Delhi, Chennai, and Bangalore is 18.41 million, 14.11 million, 7.75 million, 16.31 million, 8.70 million, and 8.50 million, respectively. 

Thus, the expanding e-commerce sector and the increasing investments being made in logistics startups will accelerate the adoption rate of digital freight matching services in India.