A few days ago I came to know about an interesting piece of information and thought to share it with the class, i.e. IRCTC jumping in the world of e-Business. Now one can justify this by saying that it is a very strategic move as IRCTC is a giant in itself when it comes to its rail ticketing business. But lets focus on both the sides of its move.
Lets start with a twist, Its not that IRCTC has entered in the e-Business game on its own, currently it is piggybacking on "Yebhi.com", which will develop and manage the e-commerce platform for the Indian Railways subsidiary via its unit Shop Online Trading Pvt. Ltd. (SOTPL). According to the deal, SOTPL will be deploying the complete online shopping platform for IRCTC in the time period of 60 days from the date of signing of the agreement. It is responsible for end-to-end customer experience, from user interface to final delivery of the product to the customer.
The deal was based on a tender, which IRCTC opened in Feb. 2013 to select a partner for its venture. The tender was open for established e-commerce companies with a minimum annual turnover of Rs 400 million from B2C e-commerce business in the last financial year. The participants were also required to have a catalogue of over 500 brands and offer merchandise from minimum of 5 product categories.
The rationale behind this move was that the IRCTC portal gets approximately 1.2 million daily visits and generates 180 million transactions annually. And along with that it has a total of around 20 million registered users on its portal. These all are the highest among all the e-commerce websites in the country.
In addition, IRCTC has been facing a lot of criticism from the consumers for being unable to handle the amount of traffic it gets. Adding to the fact that the new category added could push the traffic levels further. It still remains to be seen how IRCTC plans to handle the same.
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