IT services firm Magellanic Cloud is eyeing over USD 300 million business from drone base last mile delivery services in India over the next three years, the company said on Wednesday.
E-Commerce Sees 15% Growth
The company said the Indian e-commerce sector is estimated at USD 27 billion, with the last mile connectivity sector alone projected at around USD 6 billion and growing at an average annual rate of approximately 15 per cent.
"The company is aiming to capitalise on first mover advantage and corner a sizable share of USD 300 million (about Rs 250 crore) in market share in the first three years in this last mile delivery segment and would be upscaling its backend to meet these demands," Magellanic Cloud said.
Magellanic Cloud recently got the Directorate General of Civil Aviation (DGCA) approval for India's first logistics drone. It is looking to automate the market with its drones.
Automation For Efficiency
"Logistics drones can significantly improve business efficiencies and scale by automating the process and we would target the sector with this proposition. The sector offers huge upside potential, and we are geared to capitalise at least 5 per cent market share with our plan in the next few quarters," Magellanic Cloud Global CEO Sudheer Thumma Joe said.
The company will follow a combination of B2B and B2C (business-to-consumer) models for its drone delivery services. It will focus on working with aggregators in commercial use under a B2B (business-to-business) model, delivering supplies between hubs and providing last-mile delivery under critical cases like armed forces, difficult terrains, medical supplies etc under the B2C model.
Magellanic Cloud said that it is already in discussion with aggregators for partnership under the B2B model.
