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Domestic courier companies such as Overnite Express and DTDC are tapping the premium express delivery services segment with money back guarantees. Simply put, if the companies do not deliver within the next business day, they would return the freight charges.
Currently, such services are offered by international express delivery firms such as DHL, Fedex, TNT, and UPS.
For using this service, users have to pay 20-25 per cent higher charges than the normal express delivery levels. The service has been launched in select metros to start with.
The exceptions to returning the charges include delays caused due to earthquakes, strikes, amongst others. So, for instance, if there are delays in delivery due to the ongoing strike call for Telangana in Andhra Pradesh, then the firms will not refund the charges.
DOMESTIC COMPANIES
Overnite Express Ltd, a Rs 160-crore company, on Monday launched a service which provides “assured next business day” delivery – with a “money-back guarantee”.
DTDC has also recently launched ‘an assured next business day delivery service’ with money back guarantee.
Mr O.P. Rajgarhia, Chairman and Managing Director, Overnite Express, said that over the next two years, the company expects to earn revenues of Rs 24 crore (about seven to ten per cent of total revenues) through this service alone.
In the current fiscal, Overnite Express hopes to close with a topline of Rs 175 crore, he added.
The company has deployed dedicated delivery boys for this service alone.
“The new service is …in response to the market’s desire for such an assured service platform,” Mr Rajgarhia said.
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