SMEs to E-commerce platforms

Many small and medium enterprises (SMEs) have taken to e-commerce platforms to expand their reach, both in the domestic and global markets. According to a report, 50 Million SMEs in the country, at least three million, especially from smaller cities are already using e-commerce platforms. In coming years, the figure is likely to double and may touch 30 Million in five years.

Zeelplast Machinery was started with Rs. 50,000 in 2008. The company is based out of Ahmedabad. The fully automatic moulding machines manufacturing company was limited to supplying local areas, before it took to e-commerce. Now the company has evolved from strength to strength with its brand identity, marketing support and getting orders from across India.

According to a study conducted by Snapdeal and KPMG, nearly 85 percent of SMEs which adopted E-commerce believe it is a cost-effective medium for sales growth. It also claims SMEs actively adopting the internet for Business activity boast 51 percent higher revenue, resulting in 49 percent more profit and a seven percent broader consumer base than their offline counterparts.

Some E-commerce entities are also helping SMEs to procure raw material at affordable costs. This has emerged as a new line of business. Ahmedabad based tradohub.com is working in a similar way. It supports SMEs for buying raw material from international markets. Buying material from e-commerce platforms reduces the cost by six to eight per cent. This is helping SMEs to adopt e-commerce platforms which are beneficial for IoT and Indian Economy as well.

After E-commerce, it’s time for Taxi in Internet Market

The next big thing in India’s Internet marketplace after online retailers Flipkart and Snapdeal will be on demand taxi hailing service. Companies such as Ola, TaxiForSure, Uber, and Meru are experiencing a boom in demand for their cab services in a country where the transport infrastructure is still creaky and safe public and private commuting options are few. This is because of shift in consumer habits towards convenience and on-demand services, and most crucially, low prices, have fuelled the boom.

In present scenario, a person wants a smartphone first rather than a car. Such shifts in consumer habits including use of smartphones for buying goods and services are helping the industry grow exponentially. Ola and Uber have grown explosively over the past year by offering car rides at prices lower than the fares charged by auto rickshaws. These companies spend massive amounts of capital on marketing, discounts, recruiting thousands of new drivers and expanding into new markets.

Earlier, cabs were used for airport rides. That has changed now because of unrivalled ease of access offered by mobile apps. All the large companies, including Ola and Meru, get a majority of their business from mobile apps, while Uber is entirely app-based. Similar to online marketplaces Flipkart, Snapdeal, and Amazon, all of which host product owned by third party sellers, Uber and its rivals have no ownership of the cars their customers use.

These firms don’t even employ drivers; they simply connect customers with drivers using technology and charge a commission varying 13-20% on each ride. All these taxi companies are funded by investors. Investors will pump in much more money this year to support the spending spree of the cab aggregators. Ola is also in talks to raise more funds. Ola, Meru, and Uber are rapidly expanding into new cities. Ola is planning to expand into 200 cities by March 2016.

While cab services are becoming increasingly popular with customers, Uber, Ola and others face significant regulatory hurdles. In upcoming time, Taxi companies will enter into Billion dollar business and some may open publicly. Third big thing in Internet market after E-commerce, and Taxi will be Food business online. We may see more businesses coming online and making needful impact in society.