Electrifying Quick Commerce: How shared E2Ws are transforming last-mile delivery

Many people today take 10-minute deliveries for granted, yet few truly appreciate the astounding complexity that goes into these deliveries. Like a classical symphony, each transaction is a precisely-coordinated harmony of inventory, technology and logistics -- all playing their parts flawlessly without missing a beat. The last-mile delivery marks the triumphant finale of the 'performance', and it's here that electric two-wheelers (E2Ws) help sellers strike the perfect note, every time.

Shared E2W players have been key allies in quick commerce's incredible growth. And as the segment gears up for 10-fold market growth by 2030, E2Ws will power quick commerce's push to make last-mile deliveries smart, sustainable and seamless.

Revving up Operational Efficiency for Quick Commerce
Quick commerce has caused the biggest upheaval in India's retail ecosystem in recent times. However, stiff competition within the segment is leading to a sharper focus on operational efficiency. As they venture into newer cities and neighbourhoods and add hundreds of thousands of delivery partners to service demand, quick commerce players are seeking sustainable and profitable growth.

The margins are so thin that even a 0.1% variance in growth metrics can translate into huge gains or losses over time. This is where shared E2Ws foster better last-mile delivery economics than ICE-era transport.

In a fiercely competitive market, rental E2W fleets enable quick commerce businesses to unlock scale at will. Businesses can use these fleets to ramp up their delivery partners and volumes, without ramping up their costs (e.g., technology, marketing or adding SKUs or warehouses) to the same degree.

For millions of job seekers who wish to become delivery partners but either cannot afford their own two-wheelers or lack driving licences, low-speed E2Ws like Yulu are a lifeline. By empowering these individuals to join the gig workforce, Yulu widens the pool of workers available to quick commerce brands, while supporting better incomes for the workers themselves.

The technology-native nature of E2Ws also allows them to integrate more deeply into the delivery ecosystem. Built with fewer components and endowed with a plethora of technologies including artificial intelligence (AI) and internet of things (IoT), E2Ws unlock efficiencies unimaginable with ICE vehicles.

Let's take a detailed look at how E2Ws create better efficiencies on four specific fronts -- order fulfilment speed; efficiency and uptime; costs; and sustainability.

Order Turnaround Time
Compact shared E2Ws are purpose-designed for short-radius trips. Their practical size enables them to manoeuvre around traffic and their safe top speeds are optimised for the residential neighbourhoods they operate in. By zipping efficiently between dark stores and buyers' homes, E2W riders can deliver a high number of orders within a short span of time. The light form factor of E2Ws also lowers rider fatigue.

Efficiency and Uptime
The use of AI and IoT allows shared E2W operators to forecast demand trends and make vehicles available at the right place and time. It also lets them track vehicle health and predict maintenance needs in advance, which eliminates order delays arising from unexpected breakdowns. E2W operators also pair vehicles with energy solutions. In Yulu's case, its one-minute battery swapping service via Yuma Energy enables delivery riders to get fresh batteries within minutes, enhancing their uptime and income.

Cost Savings
By removing fuel and maintenance from the equation, shared E2W fleets support 30-40% lower delivery costs for brands compared to ICE vehicles. The surplus also creates room for the company to share this benefit with riders and/or customers.

Environmental Sustainability
Fleet electrification is a business imperative for responsible brands who want to showcase their commitment to greener business practices. Urban liveability has come under scrutiny due to emission-related air pollution.

Noise pollution, particularly from vehicular sources, is another growing nuisance in residential neighbourhoods. Switching to shared E2Ws is an excellent way for brands to reduce both their carbon footprint and noise footprint and set sustainability benchmarks for the industry.

As quick commerce brands chase profitable and sustainable growth, E2W fleets will become more ubiquitous in our cities thanks to their product-market fit and all-round benefits for every stakeholder in the last-mile delivery chain.

Amit Gupta is Co-Founder and CEO at Yulu. The views expressed are purely those of the author.