Tag: Pickkup

Business World

Exponential growth of the logistics sector provides a career to many

Apr 29, 2021 by Neel Achary 0 Comments #an enterprise-focused last mile delivery startup, #CEO, #Hemanth Chandra, #Pickkup

By Hemanth Chandra, CEO, Pickkup, an enterprise-focused last mile delivery startup

Backed by a technology-driven transformation, the logistics sector has in recent years emerged as a leading contributor to the economy as well as a major employment generator. The logistics sector in India is estimated to be a USD 200 billion industry with a contribution of over 14% to India’s GDP. The post COVID economic transition has further boosted the growth of the sector while accelerating a digital transformation across the logistics chain – from warehousing to supply chain management right to the last mile delivery. As per an assessment by the National Skill Development Corporation (NSDC) last year, logistics was among the five top employment generating sectors in the post COVID economy in India (the others being tourism and hospitality, construction, information technology and telecom).

Interestingly, the pandemic and its aftermath have served to transform the logistics sector from a supporting service sector into an essential one. With the growth of e commerce penetrating down to smaller towns and a large number of businesses shifting to online selling, the demand for efficient logistics services has surged over the past year. This has also given a major push for value addition, automation, resource optimisation, digitization and adoption of best practices for the logistics space.

Surge in high skilled specialized jobs

While the need for optimising logistics costs and resources was always high, the post COVID environment has made it indispensable for logistics service providers to improve the predictability of the supply chain and make the entire logistics process transparent and trackable. The need for establishing automated warehouses, ushering in system upgradation in the entire supply chain and instituting enhanced navigation facilities is driving the next phase of growth of the logistics sector. The need to digitise and automate processes has generated a growing demand for professionals with specialized skills such as digital adoption, data analysis, AI know how and automation, to name a few.

In the post COVID world, delivery providers have in many places toyed with the idea of robotic or drone deliveries of food and medicines. In the American city of Houston, Domino’s Pizza is starting a robotic pizza delivery system to meet the rising demand for online orders for pizza. In an Ireland town, a startup has announced the use of drones to deliver mobile phones and tablets to residents. At the same time, as demand for same day or next day deliveries rises, the last mile delivery apparatus is being upgraded with tech-enabled solutions to optimise resources, predict order volumes and ensure route optimisation.

Clearly, the logistics industry is no more a ‘low-skilled’ industry and is actively seeking highly skilled human resource to herald the rapid deployment of digital technology, Artificial Intelligence and Machine Learning. According to an estimate, the logistics sector employed about 21.24 million people back in 2016 and this number was expected to go beyond 30 million by 2022. From rising demand for courier delivery agents to warehouse managers, data analysts and people with specialised skills such as project mapping and process conversion, the sector is opening a range of work opportunities for both skilled and unskilled professionals.

Surging job opportunities in the logistics space

Here are a few career opportunities that will find increasing resonance in the logistics space in the coming years:

AI Professionals

The use of ArtificiaI Intelligence backed tools is enabling the logistics sector save time and costs by automating a series of manual tasks while helping optimise resources across the supply chain. AI Professionals are therefore in high demand to herald new algorithmic solutions, automated systems and predictive models for guiding the dynamic processes that are the need of the time.

Data Analysts

Like many other fields, Big Data and predictive analysis is presenting a huge opportunity in the field of logistics, supply chain management and last mile delivery as well. Effective predictive analytical solutions helps service providers predict order volumes and analyse the behavioural patterns of customers. Similarly, predictive analysis allows logistics applications to achieve route optimization and streamline processes across the supply chain. Already, E commerce companies are leveraging Big Data is a major way to achieve better targeting and customisation of their selling approaches. Professionals with data analysis skills are therefore likely to be a major draw in the logistics space.

Delivery agents

This is a given! As e commerce sales surge and doorstep delivery becomes a necessity rather than a luxury, there has been rising demand for courier delivery agents across the urban landscape. Over the past year, the demand for last mile delivery agents has already surged as online purchases pick pace in every sector – be it food, medicines or consumer goods.

Warehousing managers

With online buying of food and grocery generating an increasing demand for same day deliveries across top tier as well as smaller cities, e commerce providers are increasingly feeling the need for establishing warehousing facilities in multiple cities. This has in turn led to an increasing demand for warehousing managers, not just to man the facilities physically but also update the digital warehouse management systems.

Business World

Enterprise focused last mile delivery startup Pickkup set to expand presence beyond Hyderabad

Mar 21, 2021 by Neel Achary 0 Comments #Founder and CEO of Pickkup, #Hemanth Chandra, #Pickkup

Hyderabad: Having established a first of its kind local delivery model for on-demand delivery services for enterprises in Hyderabad, last mile delivery startup Pickkup is now aiming to expand its services to South’s major metropolitan cities Bengaluru and Chennai, apart from starting operations in Vijayawada and Visakhapatnam this year.

With plans to have operations in 5 cities over the next few months, Pickkup aims to reach a revenue of INR 10-12 crore by the next financial year 2021-22. The startup plans to raise seed capital in the upcoming financial year to fuel its expansion plans including establishing operations in multiple cities and hiring new fleet. The expansion plans come in the wake of stupendous post COVID growth, with the startup registering a 20-fold rise in delivery volumes over the past 11 months. The demand for Pickkup’s on-demand last mile delivery services grew tremendously from enterprises particularly from retail and e-commerce players.

Apart from Bengaluru, Chennai the tech enabled last mile delivery startup is also ready to expand its operations to other Tier-1 and Tier-2 cities of Andhra Pradesh and Telangana. While the operations in Bengaluru are set to start next month, the startup is expected to take off in Chennai and Vijayawada in June and Vishakhapatnam by October this year. Over the next two fiscal years, Pickkup aims to have operations in eight cities with an expected revenue of Rs 50 crore.

With a number of its partners having multi city presence, the startup already has order commitments from a series of businesses and e commerce platforms in Bengaluru and Chennai. The startup already has order commitments from businesses, bakery outlets, retail and several e commerce platforms in Bengaluru where operations are set to take off immediately.

“With our technology-driven services enabling a highly efficient local delivery model, Pickkup has emerged as the fastest growing last mile delivery startup. We are now ready to take our services beyond Hyderabad. Since many of our existing customers are requesting delivery support in Bengaluru and Chennai as well, these cities are on our immediate agenda, to be followed by other top tier cities. E-commerce customers have also approached us for delivery services in Tier -1 and Tier-2 cities of Southern India. We are aiming at establishing our unique on-demand model in at least 5 cities by the end of this year and expect to touch a revenue of up to INR 10-12 crore by the next financial year. We are looking to raise upto INR 7 cr including contribution from promoters to fund this expansion,” said Hemanth Chandra, Founder and CEO of Pickkup.

Notably, the startup has touched a revenue of INR 1.6 crore this financial year, growing at a tremendous 200% year on year. The organization has also sealed crucial deals with retail giants like Future Retail, Vijetha Supermarket for doorstep delivery of consumer products. A strong pipeline of customers along with rising revenues and order volumes have propelled the startup to a fast-growth trajectory.

Pickkup, which started its operation in November 2018, has witnessed an impressive growth in volume of orders and revenues over the last year. The monthly revenue has increased 10 times in the last 11 months. Pickkup has serviced over 125 enterprises, delivered 2,50,000+ orders covering 15,00,000+ kms so far with an uncompromising policy for a safe and secure service. The startup clocked 2500 deliveries on Feb 14, the highest ever orders on a single day.

Lack of efficient last mile delivery services has been a major pain area for enterprises particularly small businesses that are time and resource strapped. This paucity was felt particularly strongly by enterprises across the country last year as COVID 19 gave a major push to digital services and online deliveries. Pickkup addresses this gap with its super effective last mile delivery capabilities. The startup’s value proposition comes from its horizontal play across multiple categories providing radius free intra city deliveries to businesses. It services not just businesses but also other aggregators, e-commerce companies as well as other last mile delivery companies.

Pickkup is focused on innovation, capital efficiency and best-in-class customer experience. It uses technology and innovation to achieve positive unit economics. The startup is expected to achieve a break even by the June quarter and achieve gross profitability by 2021 itself, within just two years of starting up, a feat considered difficult to achieve in the logistics domain. It is expected to achieve 1 lakh orders per month by June 2021.