DTDC will now deliver your electronics, cosmetics within 6 hours
What's the story
DTDC, a leading express logistics provider, is venturing into the world of quick commerce with its new service 'Raftaar.' The company hopes to provide speedy deliveries within four to six hours. The move comes as part of DTDC's strategy to tap into the growing demand for quick delivery services in India's tier-2 and tier-3 towns.
Service details
'Dark store as a service'
DTDC Raftaar will directly work with D2C and mid-sized brands, providing them a "dark store as a service." This will enable these firms to deliver quickly without heavy upfront logistics investments. The service is already operational in Delhi, Mumbai, Kolkata, Nagpur, Agra, Kanpur and Bengaluru. DTDC plans to expand Raftaar's reach to 30 more cities in the next two quarters.
Infrastructure utilization
Focus on D2C brands
DTDC plans to use its existing storage facilities and network of 100,000 riders to tap into the rapid commerce segment. The company will focus on categories such as electronics, accessories, apparel, cosmetics, food supplements, and even B2B spare parts. However, it won't deliver perishable items like groceries through this service.
Financial commitment
Capital expenditure and demand expectations
DTDC has allocated 55% of its ₹150 crore capital expenditure for the financial year to the quick commerce service. The company is betting on an 'aspirational' trend in India's smaller towns to drive demand for this service. "Consumers in tier-two, tier-three towns are watching the same online content. They have the same smartphones," said Abhishek Chakraborty, CEO of DTDC Express Lt., explaining why they expect this model to succeed.
Strategic outlook
Rapid commerce to redefine logistics
DTDC's founder and MD, Subhasish Chakraborty, said the company is poised to lead the next big leap in logistics with speed at scale. He added that "rapid commerce will redefine customer experience, supply chain efficiency, and market competitiveness."