FedEx Express to increase ground fleet capacity
FedEx to add over 350 vehicles to its fleet to strengthen domestic transportation as e-commerce picks up
PremiumBangalore: FedEx Express, a unit of transport company FedEx Corp., said it would increase its ground fleet capacity in India, adding over 350 new vehicles over the next two years to strengthen its domestic transportation and supply chain capabilities as e-commerce picks up in the country.
Industries such as high tech, e-commerce and retail are demanding faster transit times, wider reach and high accessibility within the country, David Canavan, vice-president of operations, FedEx Express India said in a statement.
The Indian e-commerce market will reach $6 billion in 2015, a 70% increase over the 2014 revenue of $3.5 billion, according to research firm Gartner.
According to Google’s annual online shopping growth trends report that was released in November, India will have 100 million online shoppers by 2016. The report revealed that India’s e-tailing market is at an inflection point and will see rapid growth to become a $15 billion market by 2016. The research, which was conducted by Forrester Consulting and based on interviews with 6,859 respondents covering both online buyers and non-buyers in 50 towns, also revealed that the online shoppers’ base will grow three times by 2016, and over 50 million new buyers will come from Tier 1 and Tier 2 cities.
The light and heavy vehicles procured from BharatBenz and Tata Motors will run on dedicated routes across the country, FedEx said. These vehicles are equipped with global positioning system devices and also have reverse cameras to ensure increased safety of shipments.
“Logistics companies are seeing a greater need for ground and domestic services in India," Canavan added.
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