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.
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.
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.
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.
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, 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.