Why do start-ups in the logistics space have changing needs?

The post-pandemic world has brought drastic changes in the e-commerce logistics industry and has completely revolutionized the conventional aspects of supply chain management for businesses. While the pandemic somehow led to the collapse of many established businesses, the logistics industry stood firm in tough times, fulfilling the needs and demands of several e-commerce companies, which lead to the rise of many startups in the logistics domain due to a peak in global shipping demands.

It should be noted that there are over 1,000 active competitors in the Indian domestic logistics market, including major local firms, global industry leaders, the government postal service’s express division, and new start-ups that specialize in e-commerce delivery. According to research sources, the Indian logistics industry is expected to be worth US$ 215 billion and is expanding at a CAGR of 10.5%. Only 10 to 15% of the market as a whole is controlled by organized players.

While the Indian logistics industry continues to expand, new-age startups have several looming challenges in front of them, which are certainly posed by flaws in the present-day logistics industry.

What Are Some of The Major Challenges Faced by The Indian logistics Industry?

1. Lack of robust infrastructure

The logistics industry is aided by physical infrastructure, which influences transportation. The nation’s port and road infrastructure require improvement, which has a direct impact on the movement of products.

2. Surging fuel prices

Fuel prices and regulatory changes have a direct impact on the logistics industry since they increase the cost of transportation and freight, which directly affects the ability of logistics companies and businesses to survive.

3. Lack of accurate database

Although the logistics sector has recently shifted to a more technologically advanced environment, the sector still confronts difficulties in securing documentation, which is crucial for proving claims during arbitrations and legal proceedings. This issue is made worse by the lack of precise data at the time of documentation and several manual processes.

4. Drastic policy changes in the wake of the pandemic

The ongoing pandemic has resulted in several policy changes, including permanent and partial lockdowns, which have had a direct impact on the country’s laborers and workers, causing delays and/or suspensions to work. This is a significant reason for supply chain disruptions and one of the reasons for time overruns.

5. Unavailability of skilled labor

Despite having a demographic advantage, India still faces difficulties finding workers with the necessary skills. This is especially true in the logistics industry, which is viewed more as a support than a core industry. Inadequate training, lack of effective leadership, and inadequate support contribute to a shortage of specialized labor.

Top Upcoming Trends Which the Indian Logistics Industry Needs to Adapt to Changing Needs of Startups

1. Dynamic supply chains

If businesses want to survive or thrive in the current digital world, they must be adaptable in both their operations and their supply chains. Logistics firms can use self-managed onboarding, change management, and exception management to achieve supply chain efficiency.

2. Automation

Automation is a crucial tool for modern businesses since it lowers costs, boosts efficiency, and enables people to work on other, more productive tasks. By building end-to-end interfaces between backend WMS/ERP systems and the numerous eCommerce solutions that are becoming more and more popular, logistics companies can harness the potential of automation.

3. Real-Time Visibility and Data

Amazon has had a significant impact on consumer expectations and buying habits. Trading partners and customers increasingly anticipate continuous updates on order placement and delivery windows, which is one aspect of the so-called “Amazon effect.” Consider combining your WMS/ERP(Warehouse Management System) with supply chain visibility systems to give clients real-time status updates.

4. Less Than Truckloads (LTL)

Logistics companies are being asked to make smaller shipments more often as a result of the popularity of eCommerce and the demand for speedier service. The reason for this is that businesses cannot afford to wait until they have enough orders to fill a whole carrier. LTL, commonly referred to as less than truckload, is one remedy. Using this technique, a full load with multiple delivery stops is created by placing several smaller orders from various businesses on one carrier.


The thriving e-commerce logistics industry, which has seen strong growth in India over the past ten years, has made it easier for many start-ups in the logistics industry to get off the ground. According to TechSci Research, countless new-age businesses have strengthened the supply chain to fill the gaps in India’s disjointed and disorganized logistics sector. Examples include BlackBuck, Delhivery, Rivigo, Blowhorn, Freightwalla, NimbusPost, etc.

 As infrastructure readiness and technology are anticipated to be the primary drivers of growth for the Indian logistics industry, it is high time for emerging startups and existing players to invest in the changing future trends of e-commerce logistics, to survive the dead end.