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E-commerce logistics companies Delhivery, Ecom Specific, Xpressbees give aggregators a value shock

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A new challenging battle has begun between the three largest e-commerce logistics corporations of the nation and the new age aggregators of logistics. E-commerce centred companies like Ecom Specific, Delhivery and Xpressbees have increased the expenses for cargo shipping coincidently by as much as 35-40% for the orders that are obtained by the mode of online logistics aggregators, which are corresponding to that of Pickrr, Shipyaari, Shiprocket and several others of the event.

The increase in costs came earlier this month and is extra desirable for the companies in nature due to the realisation of the logistics players that the pricing for per shipment deliveries offered by the aggregators is very aggressive and in contrast with the company’s charges for SME’s and also enterprise purchasers. The corresponding aggregators to Shiprocket don’t own, rent or construct any sort of personal supply infrastructure. However, they combine the orders and way them to firms like Ecom specific and Delhivery for shipping.

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Xpressbees is India’s Fastest Growing B2B, B2C, Cross Border, 3PL Logistic Service Provider.

The attraction of these companies for the supply of orders came from the area of interest of manufacturers who deal in direct-to-consumer (D2C), different SMEs and native companies like Xpressbees and Delhivery. Also, according to the sources, the supply corporations that are mostly focused on e-commerce have been alarmed by some of the enterprise purchasers being influenced by the cheaper charges that aggregators have offered. The sources have mentioned that the three main players have decided to come together and elevate the charges for the aggregators. This will also improve the speed by as much as 50%. Xpressbees and Delhivery have also mailed the aggregators to inform them about the update in the prices for them. All three of the companies, Delhivery, Pickrr and Ecom Specific have refused to reply or remark anything on the same. Pricing is an important way to constantly develop the numbers of cargo but the aggressive pricing by the aggregators led to disruption.

The sources have mentioned that Cpressbees has elevated the charges and price slabs for the aggregators, and they will be introducing brand new charges for the purchasers transferring almost 1,000 orders per day and will continue to increase the order like 5,000 orders a day and so. Ecom and Delhivery have also adequately taken the related steps.

Delhivery is an Indian delivery and e-commerce logistics company.

The increase in the charges has come out at a time for the aggregators when a lot of them are already in considerable talks with other companies to raise new funds and that too at elevated valuation. According to the sources, there is a thoroughness that is due for the company Pickrr for a new series of funding. Shiprocket is one of the top aggregators, which was funded with $185 million that was led by Zomato, Lightrocket and Temasek and then was valued at $900-950 million.  

Alongside, Xpressbees recently turned a unicorn in February after the company closed a funding of $300 million. On the other hand, Delhivery and Ecom are planning for an inventory that has been postponed due to the irregularity in the markets.

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