Quick Commerce Is Forcing Logistics Providers To Rethink Their Networks: FedEX Exec

Quick Commerce Is Forcing Logistics Providers To Rethink Their Networks: FedEX Exec

SUMMARY

FedEx began serving India in 1984 through an alliance with a Global Service Participant, before venturing independently as FedEx in 1997

Nitin Navneet Tatiwala, vice-president of Marketing, Customer Experience & Air Network (MEISA) at FedEx highlights that quick commerce is not about speed alone

Along the course of the interaction, Tatiwala delves deeper into the role of FedEx in India’s quick commerce revolution and how the company is adapting to meet the demands of this fast-evolving industry

When the idea of 10-minute delivery came up first, scepticism ran high. A couple of years on, the entire logistics sector has gone into a transformation, taking a joyride on quick-commerce, which is trotting to reach $4.35 Bn by 2030, when its parent ecommerce sector will hit $325 Bn, averaging a 21% annual growth rate.

It’s not about speed alone, according to Nitin Navneet Tatiwala, vice-president of Marketing, Customer Experience & Air Network (MEISA) at FedEx, it’s more about creating a customer-centric, agile supply chain that meets the rapidly evolving consumer demands. What started off with the early adopters like Zomato, Swiggy, Blinkit, and Zepto, is now a serious consideration for a wide range of businesses. While Nykaa and Myntra have tested it for quick delivery of apparels, others like Swish, are using it for delivering freshly cooked meals.

Logistics, which lies at the heart of this transformation, has evolved in sync, as Tatiwala describes, with the adoption of technologies like artificial intelligence (AI), automation, and predictive analytics. These tools are no longer optional but essential for balancing speed, scalability, and reliability. Strategically located micro-fulfilment centres and dark stores in city-based facilities are redefining last-mile logistics, improving efficiency and ensuring consumer satisfaction.

“Quick commerce is forcing logistics providers to rethink their networks. It’s about delivering seamless, dependable solutions that keep up with the demand,” Tatiwala says in an exclusive interaction with Inc42.

Thanks to the emergence of ecommerce and quick commerce businesses, the $349.4 Bn logistics market in India is leaping ahead at 9.32% per year to scale $545.6 Bn by 2030.

FedEx began serving India in 1984 through an alliance with a Global Service Participant, before venturing independently as FedEx in 1997. India is now one of its fastest-growing markets, with operations growing 40% last year and on course to double in the next three years.

“We’ve introduced new freighters from Bengaluru, expanding our existing routes from Delhi and Mumbai. This strengthens India’s connectivity to critical global markets, including the Middle East, Europe, Asia, and the Americas. Alongside this, we’ve made significant facility upgrades, such as the Delhi Export Facility, to provide Indian businesses, especially small and medium enterprises (SMEs), with seamless access to international markets,” he says.

Along the course of the interaction, Tatiwala delves deeper into the role of FedEx in India’s quick commerce revolution and how the company is adapting to meet the demands of this fast-evolving industry.

Edited excerpts:

Quick commerce is forcing logistics providers to rethink their networks, Says FedEX VP-MEISA Nitin Navneet Tatiwala

Inc42: The Indian ecommerce sector has become a $1 Tn opportunity with close to 300 Mn online shoppers. How do you see this?

Nitin Navneet Tatiwala: India’s ecommerce sector represents more than just a financial milestone – it marks a profound transformation in how the country connects and conducts businesses. According to a PwC report, 60% of respondents prefer using apps for online shopping, and online shopping has become a lifeline for millions, especially in Tier-2 and Tier-3 cities, where access to the latest and most popular products in physical stores is often limited. This highlights the critical role of logistics in bridging these gaps.

Logistics has evolved from simply moving shipments to playing a key enabler of business success and growth. To meet the demands of this rapidly growing market, logistics providers must transform the complexity into seamless, reliable solutions. By leveraging advanced technologies such as AI-driven route optimisation, predictive analytics, and scalable infrastructure, we enable businesses in smaller cities to connect to global markets quickly and efficiently.

Our focus will remain on empowering ecommerce businesses to scale effectively, exceed customer expectations, and thrive in an increasingly competitive landscape, ensuring that the promise of India’s $1-Tn ecommerce opportunity is realised.

Inc42: How is FedEx helping Indian MSME’s?

Nitin Navneet Tatiwala: Through our SME Connect initiative, we offer mentorship, networking, and valuable resources. Formats such as SAM, comprising SAMPARK webinars, ANUBHAV on-ground events, and MANTRA hybrid sessions, directly support key industrial clusters in cities like Kochi (hi-tech and food sectors), Vellore (automotive and leather industries), and Chennai (ecommerce and silk clusters).

FedEx also supports India’s One District One Product (ODOP) initiative, enhancing the export potential of over 1,200 unique products from 750-plus districts. By improving packaging, shipping, and inventory management for ODOP-registered producers, we contribute to India’s Vocal for Local movement.

Our FedEx Innovation Lab (FIL) invests in digital startups, focussing on AI and circular supply chain solutions. These efforts empower MSMEs and foster sustainable growth, reinforcing our commitment to innovation and long-term success for small businesses globally.

Inc42: FedEx has also partnered with multiple Indian logistics service providers in the ecommerce space such as iThink Logistics, and Delhivery. How these partnerships help?

Nitin Navneet Tatiwala: It’s a blend of local reach and global expertise. It helps us effectively manage cost-sensitive ecommerce shipments, particularly in Tier-2 and Tier-3 cities. These strategic alliances not only streamline operations but also enhance the delivery speed, reinforcing FedEx commitment to offering end-to-end logistics solutions that support India’s dynamic and rapidly growing ecommerce market.

Inc42: At the start of 2024, FedEx announced plans to launch an ecommerce platform. Where does the project stand now?

Nitin Navneet Tatiwala: At FedEx, we are shaping the future of ecommerce by leveraging our leadership in supply chain solutions and advanced technology. Guided by our vision to make supply chains smarter for everyone, we aim to drive innovation, making the processes smarter, more efficient, and accessible to all.

In 2024, we launched the fdx platform in the US as an all-in-one ecommerce platform designed to integrate the entire customer journey. Powered by insights from the FedEx network, fdx helps businesses increase demand, optimise fulfilment, and streamline returns. Key features include real-time tracking with FedEx Surround, carbon emission estimates via FedEx Sustainability Insights, and end-to-end supply chain visibility – all designed to enable businesses in a digital-first world.

We can’t provide a specific timeline for the launch, but our focus remains on empowering businesses with smarter, more efficient supply chain solutions that enable growth and success.

Inc42: What are your plans for the Indian market for the next five years?

Nitin Navneet Tatiwala: FedEx is focussed on expanding its footprint in India in line with the country’s ambitious growth trajectory and its role in the global economy. With nearly 16 million packages handled daily, we leverage data-driven insights to drive innovation, digitise supply chains, and enhance the ecommerce landscape.

Our $100 Mn investment in the Advanced Capability Community (ACC) in Hyderabad is a key part of our strategy, underscoring our commitment to India’s digital transformation. This facility fosters technological innovation and cultivates local talent, with the support of partnerships like those with IIT Bombay and IIT Madras. Through these collaborations, we are creating Centres of Excellence for Smart and Sustainable Supply Chains, advancing both our sustainability initiatives and global supply chain innovation.

As we look towards the next five years, FedEx will continue to focus on strengthening logistics resilience through digital solutions and enhancing network efficiency. Additionally, we aim to empower SMEs through strategic collaborations, which is why we are proud of our association with the Chennai Super Kings.

This collaboration allows us to reaffirm our relationship with the SMEs, reinforcing our shared commitment to excellence, innovation, and community growth.

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