Meesho builds logistics SaaS platform to widen its network

While the product is still being developed internally, this would reduce Meesho’s dependence on large third-party logistics players like Ecom Express, Xpressbees and Delhivery over a period of time.

Meesho can work more closely with local and regional players who typically may not always have access to software solutions to service large volume of ecommerce deliveries. While the software solution would be open for Meesho’s existing delivery partners, it will essentially widen the logistics network for the Bengaluru-based ecommerce firm.

Internally, the product is being called logistics-as-a-platform, said a source quoted above.

“Getting this product up and running is one of the key goals for the company this year,” said a person in the know of the matter.

“It will address a lot of inefficiencies that exist in the tier-2 and tier-3 supply chain in terms of ecommerce deliveries,” one of the people quoted above said.

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Meesho has tasked former Myntra executive Sourabh Pandey, who currently heads the fulfilment and experience for Meesho, to develop the product.

A spokesperson for Meesho confirmed the development.

“Currently, end-to-end logistics capabilities have been built by a few players in the industry and many small logistics businesses and individuals are not able to participate in the ecosystem. In line with our vision to make 100 million small businesses successful online, we are building a platform that will provide them the operational know-how, network design capabilities, access to tools and technology to be a part of this network,” the company said in a statement to ET.

It said this would complement the capabilities 3Ps (third party logistic firms) have created and will also help bring more players into the larger ecommerce logistics ecosystem. Platforms like Delhivery, Shiprocket and others also offer a range of software solutions to its customers for ecommerce deliveries, which also includes direct to consumer brands and ecommerce vendors.

Currently, Meesho completely relies on third-party logistics players like Delhivery, Xpressbees and Ecom Express for fulfilling its delivery.

This comes at a time when Meesho hasn’t been able to close its planned funding round for several months now amid tighter scrutiny from investors over high-burn business models.

ET reported on June 2that the company is looking to cut costs and extend its runway, and is settling for a relatively slower rate of growth. It introduced new seller policies aimed at reducing returns. As reported by ET, Meesho has seen one of the highest return rates in the industry and that’s a significant cost centre for the firm. Its “unbundling” project is aimed to bring down costs.

Meesho’s fundraising challenges has also resulted in the company scaling down its grocery vertical- Super Store – leading to hundreds of off-role employees being sacked. ET has reviewed a copy of the layoff note sent to an employee who works for Meesho through a third-party employment called Talent Stock.

While the company denied to ET any layoffs happening in Meesho, it did not respond to specific queries about Super Store and letting go of its contract-based employees who were associated with the grocery business. “I was told the Super Store hasn’t worked out as per plan and the company is changing plans accordingly to cut costs. This included laying off contract-employees like myself and others,” one of the impacted employees told ET.

Digital publication Inc42 was the first to report about the scaling down of Super Store.