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Paperfly Plans Big F-commerce Logistics Push

Ecommerce focused logistics startup Paperfly has announced a host of new facilities targeting F-commerce companies - digital commerce companies that operate using Facebook pages as their online shop, reports the Prothom Alo. 

The company says it aims to provide smart logistics services to the smaller digital commerce companies in Dhaka. Among the new services it announced are 40 taka delivery charge within Dhaka, same-day delivery, one-week return policy, smart return policy without charge, and warehouse facilities. The company says it is working on opening up delivery hubs in 80 locations in the country. 

Up until now, Paperfly has largely been focused on serving large scale ecommerce companies, this would be the first time the company made an explicit announcement regarding its ambition to get into serving smaller digital commerce companies. 

Reading between the lines: Of all the announcement Paperfly made regarding its move to getting into f-commerce delivery, offering warehouse service is the most important one. For many small digital commerce services companies, the warehouse is a key challenge. Integrating warehouse and logistics could add a competitive advantage to Paperfly. Previously, eCourier launched a similar model in Dhaka. 

Why it matters: This is an indication that Paperfly is looking for new growth levers. While we have seen the rise of a new generation logistics companies in Dhaka on the back of a growing ecommerce industry, the sector remains limited in size. The overall number of daily ecommerce deliveries remain slim, which is between 45,000-50,000 according to several industry insiders. Many ecommerce companies such as Daraz are now looking to integrate logistics into their operation instead of outsourcing it to third party players. On top of that, the competition in ecommerce focused logistics has also intensified over the past years. Contrary to that, f-commerce remains a strong vertical and in aggregate offers a solid growth opportunity for logistics companies. 

Mohammad Ruhul Kader is a Dhaka-based entrepreneur and writer. He founded Future Startup, a digital publication covering the startup and technology scene in Dhaka with an ambition to transform Bangladesh through entrepreneurship and innovation. He writes about internet business, strategy, technology, and society. He is the author of Rethinking Failure. His writings have been published in almost all major national dailies in Bangladesh including DT, FE, etc. Prior to FS, he worked for a local conglomerate where he helped start a social enterprise. Ruhul is a 2022 winner of Emergent Ventures, a fellowship and grant program from the Mercatus Center at George Mason University. He can be reached at ruhul@futurestartup.com

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