Impact of Demonetization on Small Traders and Shopkeepers

Traders and shopkeepers were amongst those who felt the impact of demonetization the most, with their earnings turning sluggish almost overnight. However, the 50 million SME market in India could discover new possibilities for earning more by engaging their in-house staff for last-mile deliveries through the Shadowfax platform.

Addressing the Demand-Supply Gap in Last-Mile Delivery

Ensuring cost-effective last-mile deliveries has been an ongoing challenge for local sellers due to the demand and supply gap. For example, when a restaurant delivers a food order, the average delivery cost can reach Rs 70 per order. Recently, Shadowfax acquired Nuvo Ex, whose subsidiary Paketts is a pioneer in this space. Paketts already serves 700 active merchants, delivering 30 orders per day, and aims to onboard 10,000 merchants soon.

How the Shadowfax Platform Benefits Small Businesses

“By working with Paketts for 5–6 hours a day, I’ve found a good source of income. It allows me the flexibility to manage my other business as well,” said the owner of Bhagyalalshmi Enterprises in Bengaluru.

The Shadowfax delivery app utilizes a proprietary GPS algorithm to connect online e-commerce businesses and offline stores with the nearest available rider. Sarthak, who heads the Operational Process and Design Team and previously led Flipkart’s efforts to build a low-cost alternate delivery model, stated, “Shadowfax rider app offers a gamified experience, motivating last-mile partners to provide better customer experiences.”

Small shops can now receive bulk orders via the existing seller model and deliver them to nearby residences and offices on foot, saving fuel costs. Since using the Shadowfax seller model becomes a potential revenue stream, earnings can sometimes exceed the cost of retaining a full-time employee for the same work.

“I run a hardware shop and during the day, I don’t get many walk-ins. The Paketts team explained their business model to me, and now I earn a good amount of money through Paketts,” said the owner of Nitya Sanitary & Hardware in Delhi.

Abhishek Bansal, co-founder and CEO of Shadowfax, commented, “Disruptive models like micro-seller delivery networks will drastically reduce the cost of last-mile delivery, enabling the next level of growth by making logistics affordable and accessible for small merchants.”