Pigeon Express in talks to buy out Snapdeal’s GoJavas stake
Logistics firm Pigeon Express is in talks to buy out the entire stake of Snapdeal in its subsidiary, delivery firm GoJavas. “We are in discussion to buy out stake of Snapdeal in GoJavas,” Pigeon Express managing director Anand Rai said.
Pigeon Express acquired a 51% stake in GoJavas in August 2016; Snapdeal holds a 49% stake in the firm. The online retailer has stopped using GoJavas’s services and is currently delivering shipments mainly through its own logistics venture, Vulcan Express.
Rai said Pigeon acquired GoJavas after it was running in losses mainly due to reconciliation issues with e-commerce firms. “There was no transparency in e-commerce deliveries. E-commerce wave in 2013 very badly impacted logistics segment. Reconciliation is big issue with e-commerce firm. They often blamed logistics firm for loss and damage of return goods. GoJavas also suffered from this blow,” he said.
GoJavas has a Rs110 crore loss on its books and reconciliation claims of about Rs300 crore to be paid by e-commerce firms.
Pigeon delivers documents to around 6,000 pin codes and GoJavas deals in parcels. “Pigeon and GoJavas are also providing network support to each other. Decision on their merger will be taken based on outcome of discussion with Snapdeal,” Rai said. The firm expects 1,000 delivery personnel to enrol with its newly launched Angadia app, he said.