India Post Signs an MoU with Snapdeal and Shopclues; Also to Launch INR 4909 Cr IT Project

GPO_5--621x414With 1.50 lakh post offices across the country, India Post has signed a Memorandum of Understanding with Indian E-commerce companies Snapdeal and Shopclues, to join hands and propel the e-commerce logistics.
 
As stated in a release by iGovernment, on the occasion of Business Development Day on 14th Oct 2014 the department of postal services decided to join hands with the two online marketplaces, to cater to their logistics needs with its wide reach. In return, for getting their support for an INR 4909 crore IT project, to bring in electronic connectivity and capability across 1.5 lakhs Post Offices for enhanced delivery of all mail & financial services.
 
Vijay Ajmera, Sr. Vice President (Finance) Snapdeal.com said that they are happy to choose Department of Post as their delivering partner and this partnership will provide their e-commerce business a wider reach and network.
 
Speaking about this association, Sanjay Sethi, CEO & Co-Founder, ShopClues said, “We’re a marketplace for the masses and nearly 65% of our customers and merchants are based in the non-metros or tier 2/3 towns. With the widest delivery network in the country, India Post will definitely be a significant partner in our logistics operations. On a peak day, ShopClues services over 85,000 orders and with this tie-up, we expect to improve our offering for customers across 25,000 pin codes.”
 
John Samuel, Member Postal Services Board said, “India Post is no longer what it was and is going through a period of profound change. In the last few years, the post office is reinventing itself to provide services that fit into the requirement of all e-commerce players. I am very glad that the Department of Posts and ShopClues.com have signed a statement of intent about the strategic business relationship that both the companies will take forward.”
 
ShopClues initially had a local tie up with the Department of Posts whereby they would pick up their products only from their fulfillment centers. However, post this MOU, ShopClues and India Post have now associated with each other on a national level.
 
The Postal Department is trying to keep up with the changing trends of Indian consumers. Considering that this body caters to the maximum number of pin codes in comparison to any private logistics firm, such a tie-up could be a boon for the online players.

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