Flipkart arm eKart Logistics to offer services to outsiders
eKart will offer platforms and businesses end-to-end supply chain management including dropship & inventory management
eKart Logistics, the supply chain arm of the Flipkart Group, will now offer its end-to-end supply chain solutions (including logistics and warehousing) to brands, platforms and small and large businesses across the country.
"With its externalisation, eKart will now offer brands, platforms, and businesses end-to-end supply chain management, including dropship, inventory management, distribution, aggregation, and more, built on years of extensive experience," Flipkart said in a LinkedIn post.
"We are delighted to bring our deep expertise and capabilities to the small, medium and large businesses seeking to reach customers and clients across the country through our tech-driven dependable supply chain," says Hemant Badri, Senior Vice President & Head of Supply Chain, Flipkart Group.
eKart started operations in 2009 as Flipkart's in-house supply chain arm. Postal & courier services accounted for over 88 percent of eKart's principal business activity in 2021 and warehousing & storage accounted for 11 percent. eKart reported a turnover of Rs 6,582 crore (over $900 million) in 2021.
US-based Walmart had completed its $16 billion acquisition of Flipkart in 2018.
In addition, through Jeeves-F1, the services arm of Flipkart, eKart will provide end-to-end solutions (including installation, demo & repair services) for the after-sales needs of brands through its network of technical workforce across India.
By supporting businesses and managing the end-to-end cycle of fulfilment and after-sales seamlessly, eKart and Jeeves will enable brands and businesses of all sizes to focus on functions that are core to innovation and growth, and help support a vibrant digital commerce ecosystem in India, the statement added.
The Flipkart move follows the announcement by Amazon to launch Buy with Prime — a new benefit for Prime members that will extend the convenience of Prime shopping to online stores beyond Amazon.com.
"Buy with Prime will initially be available by invitation only for merchants using Fulfilment by Amazon (FBA) and will roll out through 2022 as merchants are invited to participate, including those not selling on Amazon or using FBA," according to an official statement.