Flipkart executives say e-commerce in India is in its infancy and the biggest hurdle to the market is transportation pricing.
Speaking at the Walmart Development Summit, Flipkart CEO Kalyan Krishnamurthy said the government has introduced tax cuts and ease of doing business as a strategy and this is what is driving the development of e-commerce. Said to be one.
“One of the main problems that e-commerce alone can solve is the cost structure of logistics. India is generally a cheap-ticket market. If we can reach a lower logistics cost structure, we can always increase commercial penetration. Yes,” Krishnamurthy said. The e-commerce business aims to transition its delivery fleet to electric vehicles by 2030.
According to Krishnamurthy, e-commerce penetration in India is around 7-8% compared to retail stores, but it is higher in some product categories such as electronics.
“Tax simplification used to be one of the most difficult issues. As I said, the government has performed admirably in all these areas. It has been adopted as a strategy by the government. Enabling technology also plays an important role in ease of doing business,” he added.
The business reported a 9.4% increase in consolidated net profit to Rs 100 crore. Increased from Rs 56,012.8 million in FY23. In FY2022, it was 51,176 million rupees. Nevertheless, losses increased to Rs 300 million. 489 billion to 3,371.2 million rupees.
