cbinsights had an interesting article on startups investing in startups recently. What caught my eye was the investment by Flipkart and Accel Partners in Zinka Logistics. What's this all about? Poor logistics operations by FlipKart, it seems...
Founded in 2014 by Rajesh Yabaji and Chanakya Hridaya, Zinka helps customers in moving anything, from anywhere to everywhere. Their customers include individuals, small business establishments and large companies like Flipkart; mostly anyone who need to move goods.
Flipkart’s investment in the logistics space comes in at a time when the e tailer has been news for faulty delivery of products. For example, earlier this month Flipkart sent two mangoes instead of a smartphone and bricks in place of a laptop.
There is a growing discontinuity between the on-line retailing world and supply chain providers. Although many use 3PL's to do fulfillment, many others have adopted the DIY model. It's tough to run a bicameral business model--attracting consumers to your marketplace and running the back end logistics to fulfill orders. In many cases, it is better to focus on what you are good at and not try and be world class in delivery, with so many capable providers out there.