The B2C industry has the potential to create huge economic value for retailers and startups, while also contributing to Pakistan’s digital ambition. Startups can help retailers provide an extraordinary purchasing experience to consumers, as well as save them considerable amounts of money in purchasing costs. Distributors and retailers will be more than happy to test new retail delivery system methods and adopt innovative technologies.
Clickoot
A retail delivery system is an online platform that helps consumers load a cart, review the order, and make a payment. The system may act as an aggregator, which generates a list of vendors, and then sets the order to the delivery guy. Once the order is completed, consumers can follow its progress online and receive a confirmation.
Retailers are now increasingly turning to the internet for the convenience of the delivery system. With the help of Instacart’s platform, consumers can order groceries within 15 minutes and get them delivered right to their doorsteps. Some regional grocers have even launched their own delivery system. The company is also pushing into e-commerce, offering memberships and digital ad sales.
While this partnership can prove beneficial for retailers, it also poses risks. Retailers that rely solely on Instacart to establish an online presence are at risk of losing margin, reducing customer loyalty, and losing control over their customer relationships. Instead, retailers must diversify their offerings and create a more flexible business model.
Instacart allows customers to shop from local grocery stores and place an order online, which is fulfilled by a personal shopper. The platform also offers same-day delivery within a five-hour window, or customers can plan a delivery date in advance. The service offers contactless delivery and online pickup.
Rider
A rider is an e-commerce logistics company in Pakistan that specializes in the last-mile delivery system. It has over 500 drivers and covers over 80 cities across Pakistan. It claims a 93% completion rate for e-commerce parcels. Its clientele includes the country’s top five online retailers.
Its technology stack includes live tracking and scheduling, route optimization software, and automated warehousing. Its platform has helped the company to improve its internal processes, and also build real-time connectivity with shippers. Its goal is to be the best one-stop shop for retailers looking to expand into Pakistan.
The rider was founded in 2019 by former UPS Pakistan executive Salman Allana and has raised $5.4 million in disclosed funding. It currently operates 16 delivery hubs in 60 cities across Pakistan. It says it captures 60 percent of the country’s e-commerce market. With its new funding, Rider plans to expand its delivery centers and offer tools that help online sellers scale.
Pakistan is an e-commerce hotbed, with start-ups, traditional players, and textile giants all driving the growth. The increasing volume of orders has created a demand for riders. But despite the increasing number of orders, pay has been lower than before. A veteran rider says that the pay is lower than it was in the past.
The growth of the ‘gig economy has taken hold in Pakistan. While tech start-ups continue to make headlines for securing millions of dollars of investment, the riders are often not reaping the benefits of economic development. However, as a result, the gig economy is rapidly becoming a central part of the economy, and more job opportunities have been created.
XStak
XStak, a self-service Retail delivery System, enables Next-Gen Retailers to perform Omnichannel Commerce, Marketing, Payments, and Business Intelligence. This turnkey solution includes an advanced Order Management System that streamlines order management from online order placement to delivery. It is sold on a usage-based pricing model and is easy to customize and deploy.
The rider operates a network of delivery system centers and sorting hubs across Pakistan, covering 60 cities and 60% of the country’s population. Using a digitized fleet, Rider can optimize routes, provide real-time tracking, and enable buyer scheduling. Founded by former UPS Pakistan executives, Rider has doubled its customer base and delivered more than three million parcels, covering 60% of the country’s e-commerce demand.
In Pakistan, there is a growing trend in omnichannel retailing. With seventy percent smartphone penetration, the market is prime for online retail. But the main barrier to greater adoption of online retail is the lack of a good e-commerce experience. While online retailing is growing, many Pakistani consumers don’t feel comfortable with the process.
While many retail solutions in Pakistan offer standalone solutions, most are not integrated. There are a few integrated retail software solutions that offer usage-based pricing. XStak is the only integrated retail operating system in Pakistan that offers a usage-based pricing model. Moreover, many retailers in Pakistan still rely on cash registers, which are outdated and inefficient. XStak’s POS solution does more than just manage cash, but also manages store inventory, tracks staff productivity, and provides analytics on high demand.
Daraz
The success of Daraz can be attributed to a number of factors, including its focus on quality and comparison tools between branded and non-branded products. Furthermore, the platform incorporates user-generated content and algorithms that promote good products. In addition, the service continues to evolve around a rapid delivery system.
The company is supported by Alibaba and remains aggressive in its approach to the Pakistani market. Its management once projected 1 billion in GMV by 2023, but now seems a little circumspect in that forecast. Daraz is focusing on building a strong marketplace business and a great customer experience.
In 2018, Daraz launched hubs in 19 cities to help customers place orders and return products. The hubs also provide assistance to brick-and-mortar stores. The company’s agents provide assistance and resolve customer issues quickly. The hubs allow the company to expand beyond Pakistan’s borders, enabling them to reach millions of customers in other countries.
However, Daraz faces more competition than meets the eye. The biggest competitor in the e-commerce market in Pakistan is Careem. Careem has twice the gross merchandise value of Daraz. Furthermore, it is actively developing its own payment platform. It is also a leader in logistics.
The company is part of the Alibaba Group, the e-commerce giant in the world. Sellers on Daraz have the opportunity to gain experience with technology and logistics while growing their business at home. The website offers affiliate programs to boost its revenue.
