Building links key to move forward: Rajinder Balaraman, Matrix Partners

WOW Express, cofounder, Sandeep Padoshi: WOW Express is a technology-enabled logistics company focusing on ecommerce at a pan-India level. How important is it for an intercity ecommerce logistics player to have its own Line Haul / Long Haul? Also should such companies focus on the air network or surface?

Rajinder Balaraman, VP, Matrix Partners: Ecommerce logistics startups should partner with other line-haul companies. Building a cost-competitive network is non-trivial and makes financial sense once you have hit scale. If you have access to capital to invest upfront in the network, then select lanes where differentiating on customer service really matters.

Customers ultimately care about cost, so build your network thoughtfully. Another innovative approach that some companies have followed is integrating more closely with logistics SMEs by providing them technology to enable their existing operations. This allows you to scale fast at a lower cost while maintaining visibility into service levels.