CarterX eyes leveraging first mover advantage

Indian travellers may have taken to the skies with a zest, yet it remains a price-sensitive market as proven by the success of budget airlines. Not many are seen opting for the add-on services offered by the airlines, such as meals, extra luggage, priority boarding and the kind. Entering such a market, CarterX, a Bengaluru-based logistics start-up, has ventured into first-last mile baggage transfer and other airport assistance.

Though it started operations in 2018, the company’s business picked up only in 2021 when various airlines signed on to its services. Besides airport assistance, CarterX picks up passengers’ luggage from home, loads them on designated flights or, if selected, even delivers them to the final destination, while also offering customers live tracking of their baggage movement - for a price, of course. “ To date, we’ve aided three lakh passengers with our services,” said Harsha Vardhan, CEO & Co-Founder, CarterX.

Read | Downgraded flyers to be repaid, new norms from Feb 15

He clearly intends to cash in on the first mover advantage as the Indian airports and airlines grapple with the rush of passengers venting their pent-up travel bug and open up to any relief coming their way. “We plan on capturing 33% of the passengers’ baggage movement in the next 5 years and take on 65% of the fastrack airport assistance and priority check-in services,” Vardhan told DH.

According to Skyline Market Research LLP’s Market Study Report 2022, the global baggage management system is anticipated to grow at the rate of 6.7% CAGR, through 2027. Having said that, in India, it is a very nascent market that CarterX is courting.

Even as Indian airlines turn to this niche market to enhance their client experience, more precisely convenience, analysts and industry experts point to certain concerns. Though end-to-end baggage transfer services are a futuristic approach to crowd management at airports, there are factors like cost, efficiency, and security that can potentially outweigh these benefits.

Industry watchers feel that passengers in India are used to handling their own luggage. Unless the services offered to match their expectations and comfort levels, it would be a while before there is more patronage from users Yet, already providing services at Delhi, Bangalore, Mumbai, and Hyderabad airports and having signed on with major airlines including Indigo, Vistara, Air Asia (India), SpiceJet and the newest player Akasa Air, Vardhan is upbeat about his future. “We are planning to capture all the busiest airports across India, Tier-I and Tier-II 2. Recently, we have started operations at the Chennai airport. We will expand to Kolkata thereafter and then look to consolidate the service across these six airports. We plan to add another 4 more posts in the second quarter of 2023,” Vardhan told DH.

The challenges of the market he is negotiating, however, is not lost on him. “We have been very conscious of pricing. The product is priced today at Rs 699, which is affordable,” he explained.

“Traveling light and sending luggage ahead of your travel is going to be a huge opportunity in the domestic air freight category,” said Rahul Pillai, a moving and relocation expert.