Once upon a time, people understood courier service to be just exchanging letters or important documents. That idea has changed completely in the last decade. Now app-based logistic services have become more important in transporting goods due to the increase in e-commerce shopping. In the last six years, hundreds of online or app-based e-courier companies have entered the Bangladeshi market to provide service to emerging e-commerce and F-commerce.
In addition to documents and papers, these service providers are delivering clothes, fish, meat, and even cooked food anywhere. Using technology, this service has now become digital or app-based. Now the buyer or seller can track the product through the app. Tracking the product also reduces the chances of getting lost, as well as reaching the destination faster. Let’s take a look at some of the emerging logistics tech startups in Bangladesh.
Logistics Tech Startups vs Traditional Courier Services: What Are the Key Differences
The rapid advent of technologies has already transformed the logistic landscape. However, traditional courier services are still being used today. Due to the demand for quick delivery services, traditional 5-7 days service is losing appeal. Let’s see how tech-enabled logistics have changed the industry.
Affordability
You may expect the traditional system is more affordable, but the manual process limits the capacity of the high delivery volume. As a result, diseconomies of scale may incur.
On the other hand, with the batching and chaining technology, real-time status update, and route optimization, there are many companies that offer last-mile quick delivery. These features increase the productivity for the tech-based logistics eliminating the idling and boost the cost-efficiency.
Supply Flexibility
Traditional couriers have full-time drivers to offer consistency if the drivers are reliable. But the companies may face difficulties if the volume rises suddenly.
The tech-based startups offer their service via flexible delivery agents. Further, they have continuous communication and locate the agent at any time. Therefore, it ensures meeting the demand even in the high peak season and prevents idle manpower during the low season.
Delivery Options
The delivery window is unpredictable for the traditional services, and it all depends on the courier’s schedule. Taking 5-7 days or even more, time is the norm. In contrast, the tech courier works on a short lead time that supports on-demand, next day or even same-day delivery.
Reliability and Visibility
Lack of tracking technology and manual dispatching without real-time monitoring is the biggest drawback. As a result, a limited view of the parcel’s safety and delivery time.
Real-time GPS tracking ensures the delivery agent’s location, and the company also knows the delivery time. Hence, this process meets the modern customer’s expectations.
Delivery Process & Accuracy
The traditional system still uses paper and pen to keep the records, while the tech courier uses the software and apps, which ultimately reduces the risk of human error.
Fastest Growing Logistics Tech Startups in Bangladesh
Bangladesh’s e-commerce is growing exponentially, and it has seen a 166% growth in 2020 alone, and then it is expected to see a $3 billion market size by 2023. Therefore, logistic techs have immense opportunities in this sector, and they are trying to offer top-notch services to the customers. Following are the top logistic startups in Bangladesh that are driving the market.
e-Courier
It is a bicycle-based product delivery service. Initially, the company worked with the selected eCommerce business and the e-commerce merchant to deliver their official various documents and parcels to the desired place. However, the company also provides such services to those who are not eCommerce traders.
The specific features of e Courier’s customer service include android apps, its own website, SMS facility through which the customer can know the location of his product at any time. It also offers services such as taking orders twice a day and delivering goods on the same day. In addition, to deliver products to the customer’s doorstep, they have a Door to Door facility.
Initially, the company started its operation in Dhaka in 2014. But currently, the company operates all over the country. So far, e Courier works with more than 25,000 retailers and has distributed 4.5+ million parcels through 1000 delivery agents.
Paperfly
Paperfly, the country’s fastest-growing e-commerce logistics company, is providing door-to-door delivery services and cash-on-delivery services in 64 districts, 491 Upazillas, and 4500+ Unions of the country through its own staff and vehicles. In addition, they provide warehousing and fulfillment facilities. Since launching its operations in February 2016, the company is currently providing the most cash on delivery and e-commerce services as third-party logistics support.
Its entire operation has been made with the latest technology. Paperfly scans and tracks the movement of the packages through 25 steps, and that is why their supply chain is close to paperless. Adding to these, Paperfly assures real-time updates via 100% field force tracking apps.
Bangladeshi courier delivery services
Courier delivery service
Pathao
Pathao is considered one of the quickest growing tech startups in Asia. Since its inception in 2015, Pathao has been working on creating solutions to logistic problems. As part of their relentless work, Pathao courier is now able to deliver products across the country. What is more? They are offering home delivery services in 52 districts.
Pathao courier can deliver products in Dhaka, Chittagong, Sylhet, Khulna, and Rajshahi Metropolitan areas within 48 to 72 hours. Besides this, for the ‘On Demand’ or ‘Express Delivery’ Option, Pathao delivers products within Dhaka city in 4 to 6 hours.
Users can track the parcel live from anywhere through the app. The good thing about Pathao is that they offer 100% insurance coverage for all parcels. The company also offers a ‘reverse logistics’ facility to return a product from customers.
Biddyut
Since its inception in 2016, Biddyut Limited has been providing home delivery services across the country through a total of 6 hub offices and 22 partner hubs in Dhaka, Chittagong, and Sylhet cities simultaneously. Biddyut Limited has created one of the most technology-based home delivery service companies in the country with the highest priority on the use of technology. Where the current location and delivery status of the product can be found using the mobile app, any person or organization involved in online business can register for nationwide product delivery. Biddyut offers an insurance facility to ensure product safety.
At present, all the e-commerce companies in the country, including Daraz.com, AajkerDeal.com, Grameenphone, Robi (online shop), Bagdoom, Bikroy.com, Swapno, Priyoshop, Infinity, etc. are using Biddyut’s delivery services.
Delivery Tiger
Delivery Tiger was started by Fahim Mashroor, the founder of Bdjobs.com, in 2019. It is the “first Online Logistics Marketplace in Bangladesh.” They deliver goods to 64 districts of the country. Delivery Tiger links all the popular parcel services in Bangladesh by creating a logistic marketplace in Bangladesh. Further, online merchants can deliver to the country’s 64 districts in just 48 hours a day. There is an instant payment and parcel tracking facility and no return charge. Recently, the company has started wholesale logistics services with an aim to support retail and last-mile deliveries.
Red X
Red X Delivery is basically a technology-based courier service company. Bangladesh is working to ensure fast delivery services in the e-commerce sector. They provide the service to the 64 districts and 490+ Upazillas in Bangladesh. Currently, they offer their service via 61 hubs across the country. Furthermore, Red X has more than 3500 riders to provide seamless service to the users. Red X’s features and services include next-day payment, cash on delivery, handling the product securely, live tracking, and reverse delivery.
E-Desh
E-Desh is the premier homegrown e-commerce logistics company. The company also provides countrywide delivery and logistics abroad. Besides, e-country has recently launched a courier service. They offer a wide range of services for F-commerce, e-commerce, B2B companies, online storage, and more. They also offer logistic services to SMEs and individual sellers in Bangladesh. From the first-mile pickup to last-mile delivery, air freight, express courier service, international freight forwarding, E-Desh brings everything under one umbrella.
E-Logistic
E-commerce company Evaly started its own logistic network in March 2020. They started their service through 26 Express shops in 13 areas inside Dhaka city. However, they have developed more than 200 express shops in 25 districts all over the country. Now the logistics providers complete 15,000 deliveries of foods, grocery, and pharmaceutical items.
Source: United News of Bangladesh