With increase in number of e-commerce players, hyper local delivery, on-demand services etc, the scope of logistics startup is getting increased day by day. Escalation in smart phone users is making the logistics services in more demand. With increasing demand from Tier II and III cities, enhanced logistics services are the need of today market. Hence startups working in domain of logistics improvement are having more success probability.

As per the “Logistics Market in India 2015-2020” by Market Researcher Novonous, the logistics industry is worth $300 billion and expected to grow at a CAGR of 12.17% by 2020. With such huge figures in hand, Logistics give a huge scope to entrepreneurs for improvement of existing way of working and developing their business model. LogiNext, Delhivery etc are few of the growing names of Indian Logistics Startups. This is because of increase demand of e-commerce players that in Jan’16 India Post reported a massive 900% jump in Profit.

FS brings a pictorial analysis of “Logistics Startup Business Model” along with the logistics need, cash flow and scope of further improvements / services in simple delivery business vertical –


Logistics Startup - Business Need

Logistics Startup - Business Model

Logistics Startup - Cash Flow

Logistics Startup - Break Even Analysis

Logistics Startup - Further Scope of Services


“Survival of fittest” is the key to success for new players entering with their innovative solution in the competitive market. Faster service combined with optimized operation cost defines the long term acceptance and survival. Automation is a necessary tool on which startups must focus to reduce the time of delivery, errors in operations and achieve excellence.

Though simple model of delivery will have limited scope but combined with other service like delivery planning and management services, inventory forecast, allocation and control, other related services like reverse logistics management, after sales services, call center support etc, logistics will become a great scope so success.

Wish you luck for your startup. Stay tuned with FS to know more.

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