5 Logistics Franchise Names In India Worth Considering In 2023
Logistics is highly essential because it exists at the center of every retail business. With more emerging online franchises each day, the role of logistics becomes irreplaceable. A logistics franchise can be a vital aid to all companies offering product deliveries. Couriers, delivery, ocean cargo, distribution, and trucking form the entirety of logistics. After the pandemic, logistics has grown massively due to the higher number of online delivery requests. So, we’ll explore 5 logistics franchises that look promising for 2023.
Growth of logistics franchises over the years
The Indian logistics market was valued at $250 billion in 2021, and estimations suggest it will reach $380 billion by 2025. With an annual growth rate of more than 10%, the future of this sector is bright and massive in India. We witnessed this growth due to a number of reasons. Let’s look at the most prominent ones.
Change in government regulations
The government’s reforms and guideline updates directly correspond to an increase in the growth percentage of logistics businesses in India. The introduction of GST and e-receipts has hastened the process of billing and, in turn, led to the healthy expansion of the logistics sector. We expect more government support for this sector in the upcoming years because it could improve the national economy.
Not just policy formulation but funding and promoting start-ups that are providing QR services and easy transactions will help this sector progress even more.
More capacity for making deliveries
Due to high demand, many new entrants have received funds to grow and expand in this domain. During covid, this sector has remained completely profitable and helped prevent a more significant crash in the Indian economy. New logistics franchise names are emerging, delivering essential commodities to people and bridging the demand-supply gap. With pre-existing successful business models, the need for developing a new one isn’t there. Thus, new players can stabilise their base in the industry sooner.
Intelligent logistics solutions have helped automate the logistics sector and push beyond the earlier capacity. Automation also saves the costs of hiring personnel, and giant players know this industry is utilising the power of technology to its full potential. While part of India’s logistics business expansion is a consequence of a more global expansion, it doesn’t negate the strides we’ve made and the challenges we’ve overcome to attain unprecedented developments in this space. With India’s digital payment schemes regarded as one of the best in the world, logistics businesses are likely to expand further with ease.
Apart from these, improvement in the online app shopping experience has also led consumers to spend more and trust the process. That, in turn, brought in more business for those involved in the logistics sector.
Top 5 logistics franchise names that could drive 2023
The logistics industry has seen dramatic growth over the past 3 years. Several new franchises have emerged, and the existing ones have expanded. Here’s a list of 5 logistics franchises that could do well in 2023.
DTDC is one of the leaders in the logistics franchise zone in India. It boasts the largest courier fleet and the widest network coverage in the country. The company is headquartered in Bengaluru, but its franchises are spread all over the country, with the count exceeding 5800. It offers logistics solutions for domestic and international couriers. Premium delivery options for tier-1 cities are also available. This company has been doing good for quite a while, and the same will continue in 2023.
With over 28,000 customers, Delhivery keeps growing each year. It aims to provide the operational framework for e-commerce. The customer base has a fantastic range because it includes small e-commerce players and big brands leading the industry. Delhivery was able to crack the delivery services industry due to its evolved infrastructure and technology. The expansion plans are being executed efficiently through network partners and vendors.
EKart started as Flipkart’s internal aid for managing its supply chains more efficiently in 2009. Since then, the use of online shopping has skyrocketed, and so has the number of eKart franchises. They’ve partnered with many different kinds of businesses and continue to provide fast and reliable logistics solutions in India. This arm of Flipkart will likely see expansion in the upcoming years due to the ever-so-increasing customer base of the online shopping space.
FedEx is one of the earliest names in the logistics industry and hasn’t faded with time. This was one of the first companies to include express options like overnight delivery. Currently, it’s well-established and has thousands of branches spread across the world. With multiple subsidiaries, FedEx manages to get the top contracts of the government and air cargo orders. This has now become a multinational giant that significantly contributes to the logistics solutions sector.
This company is well-established; however, it continues to plan its expansion meticulously. The ‘Strategy 2025’ includes plans for growth and scaling after 2020 by providing cutting-edge logistics services by utilising digital developments in this sector. DHL has won several awards for its quality and consistent services over the years. With the recent boom in the logistics sector, we expect DHL to expand further, so getting a franchise is a good idea.
Logistics form the backbone of a company because there’s no use in having a good product if you have a flawed delivery system. The product quality you promise won’t reach the customer in such a case. On the other hand, good logistics can increase customer satisfaction and help retain customers. So, investing in a logistics franchise will yield good results in 2023 because more companies are to take up the option of delivery. While offline shopping may not disappear, online shopping will surely reach a broader population in India. Hence, the demand for reliable logistics services will only increase in the future.