State-run India Post has launched two new parcel services- Express Parcel and Business Parcel-with an aim to generate Rs 100 crore in annual revenue.
Express Parcel is an air mail service while Business Parcel will be delivered using surface transport, said P. Gopinath, Secretary, Department of Posts.
The Business Parcel service will have a nationwide coverage. The Express Parcel service will initially be available in 20 cities, including the metros, and will be expanded across the country by the end of 2014.
Are the new services different from the Speed Post service that India Post offers?
Gopinath said the new services will focus on parcel delivery while Speed Post is mostly used for letter posts. The new services will be both for e-commerce players and individual customers, she said.
Under these services, launched on December 2, India Post will deliver parcels within 72 hours. In case a parcel is lost or damaged, India Post will pay compensation of Rs 1,000.
It will also provide free pick-up for orders above Rs 7,500 and cash-on-delivery if consignments are worth up to Rs 50,000. "Pick-up services will be initially available for customers who enter into an agreement with us," said Gopinath.
Private-sector courier companies such as DTDC Courier & Cargo Ltd, Blue Dart, DHL and First Flight already offer parcel delivery services.
India Post has competitively priced the new services. For instance, India Post will charge Rs 30 for local delivery of Express Parcels and Rs 80 for delivery in other states for items weighing up to 500 grams.
For Business Parcels, customers will have to pay Rs 45 for local delivery and up to Rs 115 for delivery in other states for items weighing up to two kilograms. In comparison, DTDC charges Rs 215 for items weighing up to 500 grams in its National plus/Blue/Green category and Rs 180 for the Metro Plus/Blue category.
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