Delhi NCR-based Ecom Express is set to become the latest Indian logistics company to explore drone technology for faster deliveries. The Warburg Pincus-backed startup will initiate a drone delivery pilot this week in the Delhi NCR region, according to Ecom Express COO Vishwachetan Nadamani in an Interview.
Strategic Expansion Plan
Following the initial pilot in Delhi, Ecom Express plans to expand the drone delivery service to Bengaluru and later to parts of Chandigarh. The company has partnered with drone startup Skye Air for this initiative.
Targeted Deliveries
When asked about the types of packages to be delivered via drones, Nadamani explained, “We expect beauty products, personal care products, and medicines to be the categories which will see drone delivery.”
How Drone Deliveries Will Work
Nadamani detailed the procedure for drone deliveries: packages will first be delivered to Skye Air’s mother pod during Ecom Express’s milk run in a particular area. A milk run refers to a daily fixed route taken by a logistics company to pick up and drop off packages.
From the mother pod, drones capable of carrying up to 5 kg will transport the packages to delivery pod zones, located within a radius of 500 meters to 1 km from the recipients’ addresses. Delivery executives of Skye Air will then complete the final leg of the delivery on foot or bicycle.
The routes for the pilot will be determined based on the shipment density in the area and Skye Air’s coverage capabilities. “Firstly, the area has to have a decent shipment density and secondly, the route must fall under Skye Air’s coverage. Whichever shipment they can fly, we will give it to them,” Nadamani said.
Ecom Express aims to start with 500 drone shipments per day for the first two weeks, with plans to increase to 2,000 shipments per day.
Ecom Express’s Extensive Reach
Founded in 2012, Ecom Express claims to deliver packages to 27,000 pin codes in 2,700 cities and towns across India.
The Growing Drone Market in Indian Logistics
Under the partnership agreement, Ecom Express will pay Skye Air a per-delivery fee for the pilot. Nadamani noted that drone deliveries have the potential to expedite shipping, increase revenue, and improve ESG scores by reducing carbon footprints.
“We are looking forward to a lakh shipments in drone delivery. At that scale, it will impact the cost side, reduce carbon footprint, add a safety net, and beat traffic. This is better than traditional logistics,” he added.
Competitive Landscape
The move comes as several logistics companies are adopting drone deliveries to reduce delivery times. Late last year, Shiprocket partnered with Skye Air for drone deliveries around Gurugram. Founded in 2019 by Ankit Kumar, Swapnik Jakkampudi, and Chandra Prakash, Skye Air is backed by LetsVenture, Chiratae Ventures, and Agility Ventures. Earlier this year, the startup secured contracts from 10 government medical institutions to deploy its drone mobility solutions.
Recently, listed logistics startup Delhivery announced plans to establish a wholly-owned subsidiary to manufacture drones and provide freight air transportation services.
The Burgeoning Indian Drone Market
The burgeoning drone market in India is expected to reach $13 billion by 2030, growing at a CAGR of 21% between 2022 and 2030, according to Report. Two drone startups, DroneAcharya and ideaForge, have gone public in the past few years.
