The Online Delivery market in Bangladesh has grown exponentially in recent years, driven by factors such as technological advancements, changing consumer preferences, and the rise of the middle class. The growth of the e-commerce industry has created a favourable environment for the online delivery market to flourish. With the government aiming to promote the use of technology through the Digital Bangladesh initiative, the online delivery market is expected to continue growing exponentially in the coming years. The market is expected to have a compound annual growth rate (CAGR 2024-2029) of 17.32%. As a result, the projected market volume will be US$2.80bn by 2029.
The Rise of Delivery Services in Bangladesh
Let’s explore the reasons for the rise of delivery services in Bangladesh:
The Modern Consumer’s Behaviour
In today’s world, customer needs everything faster and in the comfort of their home or office. With technological improvements, we can notice the rise of e-commerce platforms every day and this change brings more importance to delivery services and logistics. Companies like Porter Bangladesh are some examples of how delivery companies are growing throughout the country.
Rise of E-Commerce
Thanks to the increasing popularity of e-commerce, the need for logistics companies is greater than ever. Furthermore, e-commerce firms are currently venturing into same-day delivery services, resulting in a greater need for delivery systems.
Technological Advancement in Logistics
Online payments, live tracking, digital platforms, and more have changed the delivery landscape. This tech-enabled process has eased on-demand deliveries, customer experiences, and real-time tracking options. So, people are more inclined to the comfort these delivery systems offer.
The COVID-19 Pandemic Transition
The COVID-19 pandemic locked everyone within doors but opened up another road of opportunities. During the pandemic, different kinds of demands had to be met; one of them was escalating demands for home deliveries. It went on to develop online payments, online shops, e-commerce, etc., which supported people’s needs without having to leave their homes. People got used to this luxury and demanded more of it. The psychological shift gave birth to approximately 30 product delivery companies across the country, employing around 100,000 individuals.
Overcoming Challenges in Last-mile Delivery
Irrespective of e-commerce booms, last-mile delivery still remains a hurdle in the country. The use of cash on delivery had also been a part of this challenge in logistics. Innovative solutions offer doorstep delivery with cash-on-delivery characteristics like ‘Easy Return Policies,’ which have assisted in alleviating these hurdles. This ensures that last-mile delivery experiences are provided for the final consumer.
Courier Services
Courier services are not just for transporting goods to different cities lately; they cater to various sectors such as pharma, grocery, essentials, and much more. For instance, courier services have developed to provide instant deliveries to the doorstep for products such as medicine, groceries, daily essentials and much more.
These are just a few reasons and ways this industry is booming in Bangladesh. We can see more chances in the near future.
Conclusion
The future of delivery services seems bright. With the e-commerce market looking to grow and witness betterment in the upcoming years, the demand for efficient and reliable delivery services is estimated to soar higher. New business owners and logistics companies are primed to capitalize on the growth by introducing new tech, expanding networks, and enhancing customer experience.
Even the delivery services in Dhaka (the most crowded city in the country) have a well-established delivery system, thanks to this evolution. This dynamic change and transition for a new and digitized future has high hopes for delivery companies to grow more.
